Hello traders, and welcome to Wednesday.
Today’s calendar is surprisingly quiet, with no Tier 1 data scheduled. The one notable release we’ve already received was the Wage Price Index from Australia, which came in at 0.9%, slightly above the 0.8% expected. That gave a modest boost to the Australian dollar, adding to the broader narrative of strength in the antipodean currencies.
We are now in the aftermath of Tuesday’s U.S. inflation report, which surprised slightly to the downside. That softer-than-expected print triggered a textbook market reaction: a weaker U.S. dollar and stronger equity markets, especially in the U.S., where indices surged to new mid-term highs. In contrast, European indices lagged behind, posting more modest gains.
The Wednesday session opens with a flat to slightly positive tone, particularly in equities. This is being interpreted as a healthy correction after the strong move from yesterday, and it reinforces that buyers are still in control—at least for now.
On the currency front, we’re seeing:
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Strength in the Japanese yen and the Australian dollar, both benefiting from regional macro context and positioning.
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Gains in several European currencies, notably the euro and EM currencies.
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A continued modest correction in the U.S. dollar, which is a natural extension of Tuesday’s inflation reaction.
In the commodities space, we have:
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Oil pulling back slightly this morning. However, the broader weekly trend remains positive, and this looks like a standard dip within the uptrend.
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Gold and silver both under pressure, extending their recent short-term bearish momentum. Both metals are currently in negative territory for the week.
As for the earnings calendar, things pick up slightly today. We’re expecting results from Tencent and Cisco, two influential names that could provide direction for tech sentiment, especially in their respective regions.