Today's market kicks off with significant news from New Zealand, where inflation was lower than anticipated at 0.4%. Despite typically weakening a currency, the New Zealand dollar has strengthened and now leads the currency pack. Additionally, the UK inflation report is expected shortly, predicted to be 1.9%. Later today, we’ll see the US industrial production figures, anticipated to rise by 0.3%. Notably, Trump announced that if he wins in November, he will allow Fed Chairman Jerome Powell to finish his term, as reported by Bloomberg.
In the currency market, the New Zealand dollar is currently the strongest, followed by the Japanese yen and the Australian dollar. The British pound is the weakest, though this could change with the forthcoming UK inflation data. On the commodities front, gold and silver had an outstanding session yesterday, while oil faced challenges. Today’s European session continues this trend, with oil further declining and gold maintaining its upward trajectory, although silver is undergoing a slight correction.
US indices had an impressive day yesterday, particularly with the Russell 2000 surging over 3% and the Dow Jones climbing 1.8%. Today, European indices are striving to catch up with their US counterparts. Despite lagging, there is optimism that they can build on this positive momentum and align with the bullish sentiment prevalent in the US markets. Watching whether European indices can sustain and extend this rally will be crucial.
Overall, the market is poised for significant moves today. With critical economic data from the UK and US, alongside Trump's remarks on Powell's future, the financial landscape is charged with potential. As always, traders should stay alert to these developments, as they will undoubtedly influence market directions.