A new trading week has begun, so let’s take a look at how the markets opened.
After a relatively weak finish to last week, futures are starting Monday on the green side. The S&P 500 recorded three consecutive bearish weeks, but the new week begins with a modest recovery during the Asian session. The gains are not particularly large, but they show a short-term attempt to stabilize after the recent declines.
In the currency market, the strongest performers are the antipodean currencies. The Australian dollar and New Zealand dollar are both gaining. European currencies are also showing strength at the start of the week. On the other side of the spectrum, we see weakness in the North American currencies, with both the US dollar and the Canadian dollar trading lower.
Turning to commodities, oil remains the central focus. Prices are continuing the bullish momentum seen during the second half of last week. Both Brent Crude and West Texas Intermediate opened the week slightly higher. The move is not as aggressive as in previous sessions, however. Current daily changes are below 2%, which is relatively calm compared with the extreme volatility seen over the past several days.
Looking at the macro calendar, Mondays are usually quiet, but today includes a notable data release. Canada will publish CPI inflation data, with monthly inflation expected at around 0.7%. This figure could influence the Canadian dollar and expectations for monetary policy.
Geopolitics remains an important background factor. The situation involving Iran is still ongoing. A few hours ago, Donald Trump stated that his administration plans to form a coalition to escort commercial ships through the Strait of Hormuz. The intention of this initiative is to secure the shipping route and potentially reduce the pressure on oil prices.
For now, however, the conflict continues without major new developments. As a result, markets are beginning the week with cautious optimism but remain sensitive to any new headlines from the region.