Yesterday’s session was marked by another positive surprise with a miss on the release of the , reducing again stagflation fears – a report relatively similar to yesterday’s .
Keep an eye on the weekly report (coming out every Thursday at 8:30 A.M. E.T.) as we’ve seen three consecutive weeks of the data reported above expectations. An uptrend in these reports may just start to contribute to a growingly negative sentiment in markets.
US indices are sending conflicting sounds as they shot down yesterday and in the overnight session despite broadly positive news, with most indices up between 0.18% to 0.33% for the . Only the finishes the session down -0.44%.
The rally from yesterday’s session did not overlap yesterday’s sell-the-news from post- flows, a theme to keep an eye on for upcoming trading sessions.
It seems that markets are starting to price in more tensions in the Middle East – broke above $3,400 and the US Treasury Bond Auction had some demand to it.
Cryptocurrencies finish the day in the red after being mixed throughout the day, with most of the move happening in the last hour of the session. There hasn’t been any particular headline sparking the fall, which would point further towards a switch of sentiment.
Precious and industrial metals are continuing their run higher, with , a commodity that isn’t traded too often, having a particularly strong performance since last week.
A Picture of Yesterday’s Performance for Major Currencies
Source: OANDA Labs
The extends its downtrend, being the weakest of majors yesterday, with the breaching and closing the session below April 2025 lows at 97.92. The Dollar sold off particularly more after the consecutive misses on Inflation data.
The continues its stellar run higher, blazing through the 1.15 psychological level and breaching the 1.16 during the session before retracting, still closing up 0.85% on the day.
A few ECB Speakers are starting to be concerned about the rise, as a Euro that is too strong would impair exports and slow down further an already lackadaisical economic activity.
The is leading all majors, though, with the move towards safe-haven assets spreading to currencies – USD/CHF is closing down 1.15% on the session.
The is the third on the board in that aspect, up 0.75%.
A Look at the Economic Calendar for Today’s Session
Today’s session is not expected to be as filled with key data as the past two days – still expect volatility to rise with potential rebalancing flows going towards the weekend.
Euro traders will be looking at the expected at 0.2% m/m and will definitely add fuel to the volatility-fire in the shared currency. The data is released at 2:00 A.M. EST.
There will also be a few ECB Speakers during the day, with Elderson and Escriva.
We will also get more information for GBP traders with the UK inflation expectations releasing at 4:30 in the overnight session. UK Data has been disappointing recently – keep an eye on .
For the NA Session, the biggest data will be the at 10:00 A.M, expected at 53.5 – very low expectations overall.
The survey also releases and which tend to be good information for forecasters and may have an impact on the USD and related products, particularly Bonds.
Safe Trades!