Hello traders, and welcome to Friday morning. As the European session begins, let’s take a look at the market dynamics following Thursday’s events and the key data releases expected today.
Yesterday, the market was shaped by a series of positive data releases, starting with strong employment figures from Australia, which exceeded expectations and provided a bullish push for the Australian dollar. Meanwhile, U.S. unemployment claims came in largely in line with expectations, maintaining a steady outlook for the American dollar. However, the USD remained under pressure, reflecting caution ahead of today’s economic data.
The Japanese yen continues to outperform, maintaining its position as the strongest currency amid growing demand for safe-haven assets. In contrast, the U.S. dollar and Canadian dollar are showing relative weakness, continuing the trend seen throughout the week.
Today is a significant day on the economic calendar, as PMIs from leading economies including the Eurozone, the UK, and the U.S. are scheduled for release. These data points will provide important insights into economic activity and sentiment and are likely to influence currency movements and global indices.
Earlier this morning, UK retail sales surprised to the upside, coming in at 1.7% instead of the expected 0.4%, giving a bullish boost to the British pound. The GBP is showing strength across the board, supported by the positive data.
In the commodities market, precious metals such as gold and silver are attempting to hold on to their weekly gains, although we are seeing minor bearish corrections in early trading. Oil is also starting the day slightly negative, reflecting a short-term pullback within a mid-term upswing, as traders engage in profit-taking.
Indices remain close to long-term highs, reflecting overall positive sentiment, despite a mixed performance in futures at the end of the Asian session. The slightly bearish start is viewed as a short-term correction, as investors position themselves ahead of the PMI releases.