Hello traders, and welcome to a fresh week of trading. We begin the week on a relatively calm note when it comes to economic data, as the calendar is noticeably lighter compared to recent sessions. However, the few pieces of data we’ve already received are drawing attention, especially from China.
Chinese inflation figures kicked off the week, with CPI coming in at -0.1% and PPI falling -3.3%. These numbers highlight ongoing deflationary pressures in the Chinese economy—an issue that could influence global commodity prices and risk sentiment in the days ahead.
In terms of currency movements, the American dollar and Canadian dollar are under pressure this morning, showing early weakness. On the other side of the spectrum, we’re seeing strength in the New Zealand dollar as well as in emerging market European currencies, which are taking advantage of the softer USD tone.
Moving to the commodities space, the spotlight is on platinum and palladium, both of which are showing solid gains. Interestingly, gold is underperforming, starting the week with a pullback. However, as the European session gets underway, there are signs of a potential bullish reversal—likely driven more by dollar weakness than gold-specific fundamentals.
Oil, meanwhile, is opening the week on a slightly negative note, trading lower in early action. Still, the broader picture remains mixed, and momentum could easily shift depending on geopolitical headlines or inventory expectations later in the week.
Looking at equity markets, indices are flat to slightly higher, but importantly, they remain close to their long-term highs. This suggests that while momentum is currently modest, sentiment remains broadly positive. Traders will now be watching closely to see if this optimistic tone can carry through the rest of the week.