Quiet start of a busy week ahead
30 January 2023
Welcome to the quiet Monday of an unusually busy week ahead. This week, traders will definitely make some crucial, long-term decisions but those will rather happen in the second half of the week, definitely not today.
Monday brings us largely corrections, so we can mostly see opposite moves to those from the last week. Monday also brings us new geopolitical tension. We do not really need any more of those but the conflict in the Middle East escalates with the new attacks on Iranian soil. As for now, we may just simply have hope that it will not escalate into anything bigger and more serious.
The indices are mostly red. The vast majority of the Asian indices are currently going down. The same with American and European futures contracts. Bearish correction is something normal and as for now, there is nothing to be scared of here. DAX can still safely drop to 14800 points and SP500 will still be bullish until 3950 points.
Commodities started this week mixed. We do have a huge drop in Natural Gas, which currently goes down 6.6%. We also can see Oil losing half percent. On the other side of the spectrum, we have Gold and other precious metals gaining today. Gold is up 0.9%, Silver 0.83% but Palladium leads the pack with a 2.4% rise.
On the currency market, we see a correction as well. The strongest one right now is the Japanese Yen, which was on the back foot since the middle of January. Moves so far are small and we can see that traders are slowly warming up before the serious trading that should start on Wednesday and last probably till the last tick of Friday.