As we begin a new trading week, the markets are off to a quiet start, which is typical for a Monday. The main item on today’s calendar is the German IFO Business Climate Index, expected to come in at 86.1. This release will provide an early look at sentiment in the Eurozone's largest economy, but beyond that, there is little scheduled for today. Looking ahead, Thanksgiving Day on Thursday will see American markets closed, likely resulting in lower volatility and liquidity later in the week.
Global indices are carrying forward the momentum from last week, with most markets flashing green this morning. This positivity comes after indices ended last week on strong footing, driven by a combination of technical recoveries and improved risk sentiment. European markets are leading the way, while U.S. futures are indicating a modestly optimistic start.
The Euro is continuing its recovery, building on a V-shaped reversal seen late last week. After an initial sharp collapse, the single currency rebounded strongly, and that trend has extended into Monday’s session. Other European currencies, including the British pound, are also climbing higher. Meanwhile, the American dollar and Japanese yen are the weakest performers today, reflecting a risk-on mood across markets.
The commodities market is showing significant weakness to start the week:
-
Metals: Gold, silver, and most other metals are experiencing notable declines. However, copper is bucking the trend, climbing higher in early trading.
-
Oil: Both Brent and WTI crude are heading lower, mirroring the bearish sentiment seen across metals.
From a technical perspective, several instruments are at critical levels, making this week particularly interesting:
-
USD/CAD: The pair is currently testing a long-term support zone, a level that could determine the next major move.
-
EUR/AUD: The Euro is trading near a key horizontal support, which will be closely watched for signs of a bounce or a breakdown.
These levels will likely act as focal points for traders as the week unfolds, with potential for significant moves in either direction.
While today’s calendar is light, the week holds significant potential, particularly with U.S. Thanksgiving on Thursday and key data releases such as CB Consumer Confidence, Australian inflation, and U.S. GDP expected in the coming days. For now, the markets are in recovery mode, with indices showing strength, European currencies rebounding, and commodities under pressure.
Good luck with your trading this week!