Hello traders, welcome to Monday and the start of a new week of trading. While the calendar is quiet today, all eyes are already set on Thursday, when we will get both the ECB meeting and inflation data from the US — two events that will be the key drivers for global markets this week. Until then, traders can expect positioning and technical flows to dominate.
The new week opens with a strong push in commodities. Oil is climbing significantly higher, gold is extending its recent strength, silver is joining the upswing, and most of the major metals are flashing green. It’s a broad-based move that highlights renewed appetite for risk-sensitive assets.
As for indices, European futures are starting cautiously on the green side of the market. This comes after Friday’s volatile non-farm payrolls session, which first brought a sharp decline but then a strong reversal. Still, despite the bullish recovery, indices are trading below the levels seen before the NFP numbers were released.
On the currency market, the American dollar and Japanese yen are on the back foot. In contrast, commodity currencies are shining. The Australian dollar, New Zealand dollar, and Canadian dollar are all pushing higher, joined by the Norwegian krone, which is also enjoying a solid boost. Clearly, risk appetite is favoring the higher-beta currencies this morning.
This is the landscape as we open the new week — commodities leading, the dollar and yen weakening, and indices cautiously rebounding. The question is whether these moves will carry momentum throughout the day, or if traders will remain cautious as we count down to Thursday’s big events.