Hello traders, welcome to Thursday. Today’s session brings us some interesting moves across the board, but let’s begin with the calendar. Earlier this morning we had inflation data from Switzerland, which disappointed to the downside. That miss caused a temporary weakening of the Swiss franc, though the effect was short-lived. Looking ahead, the US calendar is busy with ADP non-farm employment change expected at 73,000, weekly unemployment claims, and ISM services PMI expected at 50.9. These numbers will be closely watched, but market attention is also firmly on tariffs. Donald Trump has asked the Supreme Court to uphold his emergency tariffs, and the outcome will likely set the tone for risk appetite in the coming sessions.
Equity markets remain upbeat. The Japanese Nikkei is climbing sharply higher, flashing a proper buy signal, while US indices enjoyed a strong upswing yesterday. European equities, however, are more cautious. The DAX remains undecided, resisting the positive momentum from Wall Street and struggling to choose a clear direction.
On the currency market, we see the US dollar gaining strength, while the Australian and New Zealand dollars are under pressure. The Japanese yen is also weaker, following the global risk-on mood. The Swiss franc softened after the weak inflation data, though its longer-term outlook remains to be seen.
The commodity market is showing more turbulence. Oil is dropping heavily, erasing all the gains from earlier in the week and falling to new weekly lows. On the flip side, metals are correcting lower today. Despite being broadly positive this week, gold and silver are now pulling back, giving up some of their recent advances. Meanwhile, in the crypto market, both Bitcoin and Ethereum showed strength yesterday, but Thursday has brought an early reversal. While the short-term picture remains uncertain, the broader setup hints at a potential major bullish reversal forming on cryptocurrencies.