Hello traders, and welcome to a brand-new week of trading.
Unlike most Mondays, which tend to start quietly, today’s macro calendar includes two significant data points worth your attention. First, we’ll get inflation data from Switzerland, expected at 0.2%, and later in the session, we’ll receive the ISM Services PMI from the US, forecasted at 50.2. These numbers could set the tone for volatility, particularly in currency markets and risk assets.
In terms of earnings, we have a lull today, with no major companies reporting. However, anticipation is building for Tuesday, when AMD is scheduled to release its earnings after the market close.
Turning to market movements, futures are opening slightly in the red, but the broader sentiment remains cautiously optimistic. There’s no panic, just a mild pullback to start the week.
Currency markets, however, are anything but quiet. We’re seeing strong gains in the Japanese yen, along with notable strength in antipodean currencies—the Australian and New Zealand dollars. In contrast, the US dollar is notably weaker this morning, underperforming against most major peers.
On the commodities front, it’s a rough start for oil, which is collapsing over 3.5% this morning. That brings oil’s year-to-date loss to nearly 20%, a stunning decline that puts heavy pressure on the energy sector.
Meanwhile, gold is staging a technical battle against the critical resistance level at $3,270 per ounce. While sellers still hold the edge below this line, both gold and silver are attempting bullish moves this morning, suggesting that momentum could shift if those resistance levels give way.
Lastly, a quick note from the political front: Donald Trump stated over the weekend that he rules out removing Jerome Powell as Fed Chair, which may cool some of the speculation surrounding Fed leadership—at least for now.