Hello traders, and welcome to Tuesday's session. The key event for today is Producer Price Index (PPI) inflation data from the US, which is expected to come in at 0.4%. Although less critical than consumer inflation, it could still provide insight into broader economic trends and influence market sentiment.
On the currency front, the American dollar continues to dominate as the strongest currency in early 2025. It's followed by the Swiss franc, which is also seeing solid demand. Meanwhile, the British pound remains under significant pressure, maintaining its position as the weakest currency of the year so far. The Japanese yen is also struggling, adding to its losses this year.
Indices are attempting to climb higher, with European markets showing more confidence and momentum compared to their American counterparts. US indices are exhibiting a more cautious approach, reflecting some hesitation among investors. Nevertheless, the overall sentiment remains slightly positive, as traders eye key resistance levels for potential breakouts.
In the commodities market, we are observing a mixed performance:
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Gold and silver have experienced intraday volatility, but as of now, prices are hovering around the same levels as yesterday. This suggests uncertainty in the short-term outlook.
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Oil saw a small correction but retains its strong bullish sentiment. In 2025, oil is already one of the top-performing assets, up 8% year-to-date, highlighting robust demand and optimism in the energy sector.
Today’s focus will remain on the US PPI inflation data and how it impacts market sentiment, particularly for the dollar and commodities. While indices show promise, traders should monitor resistance levels for potential long-term breakout signals.