Thursday is anything but quiet. We’ve seen sharp swings, fast reversals, and plenty of volatility — much of it driven by today’s data-heavy calendar.
Thursday is anything but quiet. We’ve seen sharp swings, fast reversals, and plenty of volatility — much of it driven by today’s data-heavy calendar.
The action began overnight with jobs data from Australia, which landed largely in line with expectations. That was followed by GDP from the UK, which surprised to the upside and added more fuel to the British pound’s rally — making it one of the strongest currencies of the week. The main shock of the day came from the US producer price index, which jumped 0.9% vs 0.2% expected. That’s a huge beat and instantly lit up the dollar, sending it sharply higher. Later, we still have a speech from Donald Trump, which, given his recent market-moving remarks, could bring more fireworks. The earnings calendar, however, is quiet today — no major reports to digest.
The market reaction has been dramatic. The US dollar surged on the back of the PPI data. The yen, which had been gaining yesterday, completely reversed and gave back all those gains in just a few hours, with strong V-shaped rebounds visible across yen pairs. The pound remains bid after the GDP surprise, while antipodean currencies — the Aussie and Kiwi — are firmly at the bottom of the pile. In equities, indices opened near local highs, sold off hard on the PPI shock, but then staged their own V-shaped reversal. The DAX now trades at weekly highs, pushing past last week’s peaks and setting sights on the late-July highs.
It’s been a session of wild swings and quick sentiment shifts — the kind of day where staying nimble matters most. With just one trading day left this week, the stage is set for a potentially explosive Friday.