Hello traders and welcome to Wednesday’s session. After a relatively quiet start to the week, today brings us a packed macroeconomic calendar with important data releases and central bank events that are already making waves across the markets.
China kicked off the day with a surprise to the upside—GDP data came in stronger than expected, offering a brief dose of optimism to global markets. But that was quickly overshadowed by weaker-than-expected inflation data from the UK, which came in soft, putting pressure on the British Pound, now among the weakest currencies this morning.
Still to come, the spotlight will shift to North America, where we await US retail sales, forecasted at 1.3%, and an interest rate decision from the Bank of Canada, with no change expected (rate seen remaining at 2.75%). The day will round off with a speech from Federal Reserve Chair Jerome Powell, always a potential catalyst for volatility.
On the currency market, we’re clearly seeing a risk-off mood. The British Pound, Australian Dollar, Canadian Dollar, and US Dollar are all under pressure. In contrast, safe haven currencies like the Swiss Franc and Japanese Yen are gaining ground, reflecting growing caution among traders.
Turning to equities, the mood is decisively negative. European indices are trading just under 1% lower, while US futures are down more than 1% ahead of the cash session open. Traders are clearly on edge, digesting soft inflation prints and bracing for more central bank signals.
On the commodity front, oil prices are sliding, extending a bearish streak, while precious metals are shining bright. Gold is up over 2% today, adding to an already staggering 25% gain year-to-date in 2025. It’s a clear sign of flight to safety in uncertain times, with silver and platinum also trading higher.
In summary, we’re seeing textbook risk-off flows: indices are dropping, safe havens are gaining, and gold is surging. With more major data ahead and Powell’s speech looming, expect continued volatility through the rest of the day. Stay sharp out there.