Hello traders, and welcome to Tuesday. The European session is unfolding with a strong start for many markets, despite a relatively quiet macroeconomic calendar. Early in the session, we saw inflation data from Switzerland come in line with expectations at -0.1%. Interestingly, this has fueled strength in the Swiss franc, which has gained value significantly even with the data meeting forecasts.
Later today, the U.S. will release job openings data, with JOLTS figures expected at 7.51 million. This will likely bring some volatility to the American dollar, which is currently among the weaker currencies on the market alongside the Japanese yen.
European currencies are performing exceptionally well today. The euro, British pound, Hungarian forint, and Czech koruna are leading the way, showing resilience and bullish momentum. Meanwhile, the American dollar and Japanese yen are struggling, leading to notable gains in pairs involving these two currencies. This dynamic highlights the broader strength in Europe, coupled with a risk-on sentiment globally.
Indexes are having a stellar week, with Monday’s bullish momentum carrying through into today. The Nasdaq has broken the key psychological resistance of 21,000, signaling a fresh buy signal and bolstering sentiment for tech stocks. Over in Europe, the German DAX is continuing its impressive run, contributing to an overall positive sentiment for global equities. The so-called "Santa rally" appears to have begun, with investors optimistic heading into the final month of the year.
Silver is stealing the spotlight in the commodities market. Despite gold moving sideways, silver has surged significantly higher, showcasing its independent bullish momentum. Gold, while in the green, remains relatively quiet and lacks the same level of demand. Oil is also experiencing sideways movement, though today’s slight climb hints at potential bullish attempts. However, demand for oil remains subdued, and no major breakout seems imminent.
Key Observations:
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The yen is showing weakness, resulting in climbing prices for pairs involving the Japanese currency.
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European indexes, particularly the DAX and Nasdaq, are driving the rally, signaling strong investor sentiment as December begins.