Hello traders, welcome to Wednesday. The market is finally coming back to life after a few quieter weeks, with a busy economic calendar and several themes driving price action across asset classes.
We already had inflation data from Australia, which came in lower than expected at 3.4% versus 3.6%, yet the Australian dollar is holding up well and is not showing any notable weakness. Still to come today are Eurozone inflation, ADP non-farm employment change, Ivey PMI from Canada, ISM services PMI from the US, and US job openings, making Wednesday one of the more data-heavy sessions in recent weeks. On top of macro data, geopolitics are again influencing markets, particularly developments around Venezuela. Recent comments from Donald Trump suggesting that Venezuela could turn over 30–50 billion barrels of oil to the US have weighed heavily on oil prices. The prospect of increased supply is clearly negative, and oil has already given back the gains seen at the start of the week, slipping into negative territory for the year.
On the commodities side, metals are undergoing a correction. Silver and gold both moved lower during the Asian session, although the start of the European session is bringing a modest bullish recovery, especially in gold. This looks more like a technical pause after strong prior moves rather than a full trend reversal at this stage. Oil remains the weakest part of the commodity complex, with sentiment clearly pressured by the supply narrative.
In FX markets, the standout move is renewed strength in the Japanese yen, which is gaining visibly across the board. At the same time, European currencies are under pressure, both majors and minors, reflecting a combination of risk adjustment and upcoming macro uncertainty. As for equities, indices had a very strong session yesterday, posting significant gains. Wednesday is bringing a bearish correction, but so far this pullback is relatively small compared to the size of Tuesday’s rally. Overall, this looks like healthy profit-taking rather than a change in trend as the European session gets underway.