Hello traders, welcome to Monday and a brand-new trading week. Let’s take a look at how markets are opening and what is driving sentiment at the start of the European session.
The macro calendar is relatively busy for a Monday, which is somewhat unusual. The key data point today is Canadian CPI, expected at 0.1%, which could influence the Canadian dollar later in the session. In addition, we received comments from the Reserve Bank of New Zealand, stating that the official cash rate is likely to remain at its current level of 2.25% for some time. Markets interpreted these remarks dovishly, and as a result, the New Zealand dollar is under clear pressure, currently the weakest major currency. The Australian dollar is also struggling, while EUR and GBP are slightly weaker. The standout performer on the FX market is the Japanese yen, which strengthened notably during the Asian session and continues to gain traction as the week begins.
On the equity side, index futures are opening on a positive note, showing a bullish rebound after Friday’s sharp sell-off. Last week ended with a notable bearish correction, and today’s price action suggests that buyers are attempting to stabilize the market and recover part of those losses. While this bounce is encouraging, it should still be viewed as a reaction within a broader corrective phase rather than a confirmed return to strong bullish momentum.
Commodities are showing mixed but interesting dynamics. Oil is attempting a rebound, but the broader long-term trend remains negative, so this move currently looks more like a corrective bounce than a trend reversal. Precious metals, however, are clearly outperforming. Gold, silver, palladium, and platinum are all pushing higher, with silver already printing long-term highs. Gold is now very close to its own all-time highs, and momentum suggests that a fresh breakout could happen soon. This strongly indicates that the recent bearish correction in metals is likely over, and traders are once again positioning for further upside.