Hello traders, welcome to a new trading week—and the last full week of March. The markets have kicked off the week on a positive note, with futures flashing green and a tone of optimism setting in ahead of key macroeconomic data.
The spotlight today is on American indices, which are gearing up to challenge major resistance levels. A strong close today could trigger fresh buy signals and potentially set the tone for a bullish continuation into the end of the month.
On the currency front, the story is equally compelling. There is visible weakness in both the Japanese Yen and the U.S. Dollar, while European currencies are strengthening across the board. This early price action could be a precursor to a larger move, especially on pairs like EUR/USD. Traders should keep a close eye on the Euro, as technical conditions align for a potential bigger breakout.
In the commodities space, the metals sector is shining. Gold, silver, platinum, palladium, and copper are all climbing higher, continuing their impressive momentum from earlier in the year. The oil market, however, remains mixed. While prices are hovering near mid-term highs, there is no decisive direction yet, though the broader trend still leans positive.
Today also brings us an unusually busy Monday macro calendar. It’s PMI Day, with Purchasing Managers' Index reports expected from France, Germany, the entire Eurozone, the UK, and the US. Expectations are for European PMIs to lag behind those of the US, and as has become the norm, manufacturing figures are projected to remain softer than services, with most services PMIs expected above 50.
With markets at key technical levels and PMIs set to guide sentiment, today’s session may provide a critical clue on how the rest of the week will unfold. Stay alert—volatility could pick up fast.