Hello, traders! Welcome to Monday — a fresh week, new opportunities, and already some interesting market dynamics unfolding.
Today’s calendar started with Spanish inflation, which came in at 2.9% instead of 3.1%, but the number didn’t leave any meaningful footprint on the Euro. Later, the market will be watching pending home sales from the US and a speech from Donald Trump, but the biggest story so far comes from Japan. Members of the Bank of Japan are showing a more hawkish tilt, increasing pressure on Chairman Kazuo Ueda to consider faster and more aggressive rate hikes. This shift has had an immediate impact on FX markets — the Japanese yen is the strongest currency in the pack this morning. Alongside it, we see strength from the Australian dollar and British pound, while the US dollar, Canadian dollar, Swiss franc, and Euro are under pressure.
Indices, on the other hand, are not enjoying the same momentum. After closing last week with strong performances in both the US and Germany, Monday begins with a correction phase. The DAX, for example, made new local highs at the end of the Asian session but quickly reversed lower, slipping into a bearish correction as Europe gets underway.
Commodities are painting a mixed picture. Gold continues to shine, reaching fresh all-time highs, while the broader metals complex looks strong too — platinum is already up more than 3% today. Oil, however, is struggling. After rallying in the first half of Friday’s session, crude reversed sharply lower and continues to decline this morning.
Finally, turning to cryptocurrencies, there’s a bit of relief for buyers. After last week’s heavy sell-off in the second half, Bitcoin, Ethereum, and others are pushing higher, showing early signs of recovery and perhaps laying the groundwork for a rebound.
So, as early as Monday, the week is already delivering strong FX themes, volatile commodities, and promising setups in crypto. Let’s see if this momentum builds as we move deeper into the week.