Hello, traders! As we kick off a new week, we have some significant updates: Joe Biden has officially stepped out of the presidential race. This move was somewhat expected by many, so it hasn’t caused a massive market stir. However, the unexpected decision by China's central bank to cut the short-term seven-day reverse repurchase rate from 1.8% to 1.7% has caught the market off guard and generated some reactions.
Today’s economic calendar is quite sparse with no major data releases, allowing markets to process the recent news. Futures are currently in the green, attempting to rebound from last week's significant bearish correction. Despite this positive start, the mid-term outlook for indices suggests potential further declines in the coming days or weeks.
In the currency markets, the Japanese yen is the strongest performer so far, raising speculation about possible intervention. Conversely, the Australian dollar, New Zealand dollar, and Canadian dollar are showing weakness. This decline in commodity currencies is linked to the sharp drops in silver, gold, and oil prices last week. Oil, in particular, seems to be settling into a bearish trend. Cryptocurrencies are seeing a minor pullback today, but the overall sentiment remains bullish after last week’s strong performance.