Hello traders, and welcome to Thursday’s trading session. We’re seeing some interesting movements across the markets, but let’s begin with a quick look at the calendar.
Yesterday, we had inflation data from both Australia and the UK. The reactions were mixed — the Australian dollar gained strength, while the British pound edged slightly lower in response. Later in the day, we got durable goods orders from the US, which surprised to the upside with a significantly better-than-expected result.
Today, the spotlight is on US GDP data, with the final reading expected at 2.3%. This will be the key macroeconomic release of the day and could shape sentiment heading into the end of the week.
From a market movement perspective, Wednesday was marked by a sharp correction on US indices. American equities dropped significantly, reigniting concerns that the market may be resuming its midterm bearish trend. European markets are opening Thursday on a negative note, as they digest the selloff from across the Atlantic.
On the currency front, we’re seeing continued strength in commodity-linked currencies like the Australian and New Zealand dollars, as well as European currencies. The American dollar is under pressure this morning and is currently the weakest among majors. Looking at the week overall, AUD and CAD are clearly outperforming.
In commodities, oil is undergoing a mild pullback today, but the overall tone for the week remains positive — a refreshing change after a string of declines. Gold and silver are starting Thursday on a bullish note, while platinum and palladium remain subdued.
All eyes now turn to the indices, particularly in the US. The big question: Was yesterday’s selloff the beginning of a deeper correction, or just a temporary shakeout before another leg higher? Today's session may offer critical clues.