Hello traders, and welcome to Wednesday. The Asian session kicked off with notable currency movements, particularly a sharp weakening of the Japanese yen. As a result, JPY pairs are climbing higher, testing local resistance levels. Meanwhile, the British pound, US dollar, euro, and Swiss franc are all showing strength, adding further momentum to the currency market.
The equity market continues its positive trend, with major indices experiencing gains this week. US indices are now approaching local resistance levels, and if momentum continues, we could soon see breakout trading signals, potentially confirming a bullish move.
In the commodities market, oil remains in a positive mid-term trend, despite experiencing a small bearish correction today. The overall sentiment for oil remains bullish, as the price continues to rebound from recent lows. Metals, however, are showing mixed performance. Gold and silver have been struggling, though silver made new lows yesterday before reversing sharply. This type of V-shaped reversal often presents a buying opportunity, and it will be interesting to see if buyers continue their push today.
The key event on today's macroeconomic calendar is the release of US inflation data. The Consumer Price Index (CPI) is expected to remain steady at 2.9% year-over-year, while the month-over-month figure is projected at 0.3%. Given the current market momentum, today's inflation report could be a key driver for further moves in currencies, indices, and commodities.
With key resistances being tested in currencies and indices, and inflation data on the horizon, today could bring important trading signals across multiple asset classes. Traders should keep a close eye on yen pairs, US indices, and silver for potential opportunities.