Good morning, traders. Thursday's market activity was influenced by several key economic data releases and corporate earnings reports, setting the tone for today. Australian job data revealed a mixed scenario with a higher unemployment rate, which contributed to cautious market sentiment. Additionally, the U.S. reported disappointing figures for building permits, the Philly Fed Manufacturing Index, and industrial production, which compounded the uncertainty.
As we move into Friday, the market opened with important data from China. The Chinese industrial production report exceeded expectations, suggesting stronger manufacturing activity, while retail sales fell short, indicating weaker consumer spending. These mixed signals from China are likely to influence global market sentiment as the day progresses.
Despite the ongoing influence of Wednesday's U.S. inflation data, which indicated a slight cooling and led to a weakened dollar, the U.S. dollar is showing some strength today, correcting from its mid-week drop. The Swiss franc, however, is experiencing notable weakness, which traders should keep an eye on as they navigate the forex market.
In the commodities sector, oil is showing a promising bullish reversal pattern, which could signal a strong buy opportunity if the trend continues. Precious metals, including gold and silver, as well as copper, continue their upward momentum, reflecting positive sentiment and demand in these markets. The setup for oil is particularly interesting as it finishes a bullish reversal pattern, with high chances of a long-term buy signal emerging.
As we head into the final trading day of the week, it's important to stay vigilant and monitor these developments closely. The market remains dynamic, and the influence of recent economic data and corporate earnings will continue to drive sentiment. With less activity expected in the macroeconomic calendar next week, today’s market moves could set the tone for the coming days.