Hello Traders, welcome to Wednesday’s session! The macro calendar today is relatively quiet, offering little in terms of major market-moving data. We’ve already seen inflation numbers from Australia come in as expected at 2.7%, providing no surprises or significant shifts for the Australian Dollar, which remains flat. Later in the day, we’ll get data on new home sales from the US and the weekly crude oil inventories report, which could influence commodity markets.
Looking back at yesterday’s session, it was a tough day for economic indicators. German IFO Business Climate came in lower than anticipated, and US CB Consumer Confidence also disappointed. These weaker-than-expected numbers have contributed to a somewhat cautious start to the trading day. Indices are mixed; American futures are edging slightly lower, while European markets are experiencing a minor bearish correction. However, these movements are not dramatic and don’t suggest any significant shift in sentiment for now.
On the currency front, the Euro is taking the lead as the strongest currency today—a rare sight in recent weeks—while traditional safe havens like the Swiss Franc and Japanese Yen are losing ground. This shift indicates a slightly more risk-on sentiment among traders. Meanwhile, the Australian Dollar remains flat, showing no significant reaction to the morning’s inflation data.
In commodities, the spotlight is on gold, which is hitting new long-term highs—a standout performer while its fellow metals, including silver, copper, and platinum, are struggling. Oil is also under pressure, sliding after encountering key resistance levels. With the crude oil inventories report due later, there could be further volatility in the energy markets. A short position on oil might be an intriguing option at the moment, but waiting for the inventories data would be prudent before making any moves.