Thursday brings us a rather empty macro calendar. The only data scheduled comes from the US—challenger job cuts and unemployment claims, as always—and later we will get Ivey PMIs from Canada, expected at 53.6. So from the calendar side, volatility should be moderate.
From the fundamental perspective, the most interesting development came overnight from Reuters, reporting that the Bank of Japan is likely to raise rates in December. Despite the significance of this rumour, the market reaction is surprisingly muted. Japanese yen is trading more or less unchanged as we approach the start of the European session, so traders are not rushing into JPY just yet. Across the FX board, movements are fairly calm, with the most visible strength coming from the Australian dollar and the American dollar, while the most notable weakness remains on the Swiss franc.
On the commodities, we can see a recovery attempt on oil, which is trying hard to end its multi-week bearish correction and return back into the uptrend. Metals, on the other hand, are starting Thursday in the red. Gold, silver, platinum and palladium are all under pressure before the European cash open, failing to extend the bullish attempts seen earlier this week.
Interesting action continues on indices, particularly on the Nikkei, which is pushing significantly higher. The technical background is supportive as well—price created an inverse head and shoulders pattern, giving Japan’s main index an additional bullish boost. American and European futures are also green on Thursday, adding to the overall optimism.
Finally, a quick look at cryptocurrencies: after a very successful Tuesday and Wednesday, the market pushed higher. Still, keep in mind that these moves are only bullish corrections within a deeper downtrend, so traders should remain cautious on crypto exposure.