Independence Day Holiday Keeps Markets Quiet

Yesterday's key data releases included CPI inflation from Switzerland and the ISM manufacturing PMI from the US. The Swiss inflation figure came in below expectations, which sent the Swiss Franc tumbling, albeit without much drama. Meanwhile, the ISM manufacturing PMI from the US also underperformed, coming in at 46 against a forecast of 47.2.

Today's economic calendar is not very busy. The most significant event was the Reserve Bank of Australia's interest rate decision, where, as anticipated, rates were left unchanged at 4.1%. The announcement resulted in the Australian dollar becoming the weakest currency in the Forex market as European trading began.

Turning to the financial markets, indices saw a slight bearish correction on Monday, and it appears Tuesday will follow suit. Despite the minor retreat, buyers still seem to be in control, with the overall momentum relatively low. The US dollar remained flat, with no significant movements reported.

On the commodities front, precious metals continued their bullish correction, which began last Thursday. Conversely, oil prices reversed their recent bullish trend. For instance, WTI oil formed a shooting star candlestick pattern upon touching the long-term downtrend line, suggesting a potential shorting opportunity. Similarly, Brent oil touched the downtrend line connecting lower highs since the end of May, also hinting at potential short opportunities.