Let's dive into what's in store for the markets today. Yesterday was uneventful, with no major data releases, but today looks promising. Big names like Microsoft and AMD will announce their earnings after the market closes, while Procter & Gamble, Merck, and Pfizer will share theirs before the opening bell. These companies' performances are eagerly awaited and will provide valuable insights into their respective sectors.
On the macroeconomic front, today's key releases include the German Prelim CPI, expected at 0.3%, which will shed light on inflation trends in Germany. In the US, the CB Consumer Confidence index is projected at 99.7, offering a glimpse into consumer sentiment and potential spending behavior. Additionally, the JOLTS job openings, anticipated to be just over 8 million, will provide a snapshot of the labor market's strength and potential wage pressures.
In the currency markets, the yen is showing weakness again, reversing some of its recent gains. At the same time, commodity currencies like the New Zealand dollar, Australian dollar, and Canadian dollar are experiencing a bit of a rebound, likely due to profit-taking after their extended downtrends. Interestingly, oil prices are hitting new mid-term lows, indicating a bearish outlook in the energy market, while precious metals are moving sideways, struggling to find clear direction after recent volatility.
Looking at indices, the FTSE had an impressive performance with significant gains on Friday and Monday, although it did pull back slightly. Meanwhile, American indices are moving sideways, waiting for clearer signals from upcoming economic data and earnings reports. Key trading setups include the euro-dollar, which seems poised to hit new mid-term lows, and yen pairs, which are extending their bullish bounce from last week. This mixed sentiment highlights the current market uncertainty and the need for traders to stay alert.