Welcome to Thursday's trading session. Today’s calendar is unusually quiet for a Thursday. Typically packed with significant data releases, today brings only retail sales from Australia, which came in at 0.8%, slightly below the expected 1%, and Chinese inflation, which met expectations at 0.1%. Beyond this, there are no Tier 1 data releases from Europe or the US. The real action is anticipated tomorrow with the Non-Farm Payrolls report and job data from Canada.
The commodities market is showing resilience, with gold and silver breaking key resistances and climbing higher. However, both are struggling to maintain these gains as we approach the end of the European session. Despite this, the general sentiment remains positive, particularly for oil, which continues to edge higher, reflecting strong underlying demand.
Indices are also faring well today. The DAX successfully defended its key support, while the CAC 40 is advancing toward higher levels. Over in the US, American indices are putting pressure on key short- and mid-term resistance levels, signaling that a potential breakout could be on the horizon. Overall, indices are ending the European session with a positive tone.
On the forex market, we’re seeing significant moves in pairs with the Yen, as the Japanese Yen emerges as the strongest currency today. It is joined by the American Dollar and Swiss Franc in the green, signaling that safe havens are in demand. On the other hand, commodity-linked currencies such as the British Pound, Australian Dollar, New Zealand Dollar, and Canadian Dollar are underperforming.
The British Pound remains under notable pressure, continuing its struggle as the weakest currency so far in January. Unfortunately for pound bulls, there appears to be little indication of a reversal in this trend anytime soon.
Today’s session is characterized by a lack of major data releases, leaving the market to digest earlier moves. Commodities are performing well, indices are pushing higher, and safe havens are dominating the forex market, with the Yen leading the way. All eyes now turn to tomorrow’s Non-Farm Payrolls and Canadian job data, which are expected to provide the next wave of market volatility.