Good morning, traders, and welcome to Friday! As we close out the week, let’s recap what happened on Thursday and take a look at what’s unfolding today, as well as what’s on the horizon.
Thursday Recap:
Yesterday was a significant day in the markets, marked by a mix of data releases and key events. The big story was the release of PMI data from major economies, including France, Germany, the Eurozone, the UK, and the US. As expected, the manufacturing PMIs generally came in below 50, signaling contraction, while services PMIs stayed above 50, indicating growth. This divergence continues to highlight the ongoing challenges in the manufacturing sector versus the relative strength of the services sector.
In the commodities market, we saw some notable moves. Oil struggled throughout the day, despite a brief bullish bounce on Wednesday. The bearish sentiment continued, with prices edging lower as the day progressed. Precious metals also had a mixed session—silver saw a slight uptick, while gold remained under pressure, moving lower.
On the currency front, the Japanese Yen, Swiss Franc, and New Zealand Dollar were among the stronger performers, while the American Dollar and Canadian Dollar remained under pressure. The Yen, in particular, gained some ground following comments from Bank of Japan Governor Kazuo Ueda, who discussed the impact of forex moves on the economy.
Friday's Market Action:
As we head into Friday, the markets are already showing some interesting dynamics. In the early hours, the Japanese Yen, Australian Dollar, and New Zealand Dollar are leading the pack, showing strength as the trading day begins. Conversely, the American Dollar is the weakest currency so far, continuing its downward trend from earlier in the week.
Futures are indicating a positive start to the European session, with buyers stepping in to recover some of the losses from Thursday. The sentiment on the indices remains cautiously optimistic, as traders seem eager to close the week on a high note.
In the commodities space, oil is attempting to extend the bullish reversal that started on Thursday, but the long-term outlook remains uncertain. Precious metals are also trying to stabilize, with gold and silver both looking to regain some lost ground.
What to Watch For:
Looking ahead, today’s key events include Canadian retail sales data, which is expected to show a decline of 0.3%. This data could further influence the Canadian Dollar,