Good morning traders, and welcome to Friday. The market is coming off a busy Thursday, highlighted by the Bank of England’s rate cut, which sent the British pound tumbling. The 25-basis point cut was expected, but the negative sentiment was reinforced by a downbeat monetary policy report. Meanwhile, Canadian Ivey PMI came in at a disappointing 47.1, further weakening sentiment toward Canada’s economic outlook.
In the U.S., Amazon reported better-than-expected earnings, including higher EPS and revenue, yet the stock is set to open around 4% lower in today’s trading. Meanwhile, Walt Disney and Qualcomm also posted positive results but saw muted or negative reactions, indicating cautious market sentiment toward corporate performance. Futures markets, however, managed to hold gains, with indices climbing steadily despite the lingering effects of Monday’s volatility.
In the currency market, the Japanese yen remains strong, while the British pound continues to struggle. The Canadian dollar is on firmer footing, having recovered from earlier tariff-related losses, and is on track to end the week in positive territory.
On the commodities front, metals saw a minor pullback on Thursday but remain elevated, with gold, silver, and copper maintaining impressive year-to-date gains. Oil, on the other hand, continues to struggle, with prices under pressure amid supply concerns.
Today’s spotlight is on U.S. Non-Farm Payrolls (NFP), expected at 169,000, along with Canadian employment data. While NFP can be a market-moving event, traders appear to be anticipating a moderate response unless the report surprises significantly. As the day unfolds, market participants will be watching closely to see if these job reports confirm or disrupt the current momentum across equities, currencies, and commodities.