Good morning, traders! Welcome to Friday’s market commentary. Yesterday was a whirlwind in the markets, packed with significant movements and critical data releases. The spotlight was on the Australian job data, which came in much better than expected with an employment change of 50,000 against a forecast of 20,000. This boosted the Australian Dollar significantly. Meanwhile, the UK’s claimant count change disappointed at 32.3k, weighing on the British Pound. The ECB maintained its interest rate at 4.25%, a decision that had little immediate impact but continued to highlight the cautious stance of European monetary policy.
Today, as we enter the European session, the market is digesting the UK’s retail sales, which sharply declined by 1.2%. This data has put additional pressure on the British Pound, continuing its downward trajectory from yesterday. Traders are now looking ahead to Canada’s retail sales figures, expected at -0.5%, which will be crucial for the Canadian Dollar’s short-term direction.
In the currency markets, the Japanese Yen is seeing a rebound after yesterday’s weakness, with the American Dollar also gaining strength. Conversely, the New Zealand Dollar and British Pound are lagging, reflecting the mixed economic signals from their respective regions.
On the commodities front, precious metals, particularly silver and gold, continue their descent following significant declines yesterday. Oil prices are showing resilience, trying to maintain their current levels despite broader market volatility.
Indices are in a mixed state. American indices corrected sharply yesterday, with the S&P 500 and other major benchmarks seeing notable declines. European indices are attempting a recovery, with the FTSE making gains, although the DAX and CAC 40 are still facing challenges.