Welcome to Thursday. Let’s look at the aftermath of Wednesday, which was by far the most important trading day not only this week, but arguably this entire month. The reason is simple. Yesterday’s calendar was packed with top-tier events that set the tone for multiple asset classes.
We had interest rate decisions from both Canada and the United States. In Canada, rates were left unchanged, as expected. The same applied to the US, where the Federal Reserve also kept rates on hold. The decision itself was fully priced in, so the market’s focus shifted almost entirely to the messaging from Jerome Powell during the press conference.
Powell avoided commenting on whether he would remain at the Fed after his term as chair expires, and he also declined to address the situation in the US dollar directly. He emphasized that there was broad support within the committee for holding rates at current levels. According to Powell, available indicators suggest that economic activity continues to expand at a solid pace. He also noted that job gains have remained modest and that the unemployment rate is showing signs of stabilization. In the post-meeting statement, the Fed reiterated that inflation remains somewhat elevated, keeping the door open for a cautious policy stance going forward.
In terms of dollar price action, moves around the Fed were relatively contained. The US dollar had already weakened significantly earlier in the week, and while there was a brief bout of strength just ahead of the Fed decision, that move quickly faded. We are once again seeing renewed weakness in the dollar. Overall, the volatility on Wednesday was noticeably lower than what we saw on Tuesday, when the dollar experienced much sharper swings.
Yesterday was also dominated by earnings from some of the biggest names in the market. Microsoft, Meta Platforms, and Tesla all reported earnings after the market close, and all three beat expectations. The market reaction, however, is mixed in pre-market trading. Microsoft is down around 5.5%, Meta Platforms is up roughly 7%, and Tesla is trading about 2% higher. This divergence highlights how positioning and expectations matter just as much as headline results.
Looking at indices, yesterday’s session was broadly positive. Today, during the Asian session, futures are mixed. European futures are pushing higher, while US futures are slightly weaker, suggesting a more selective and cautious tone as markets transition into the European open.
On the currency market, the Australian dollar is currently the strongest performer, with the New Zealand dollar also showing solid gains. The Swiss franc is firm as well. On the other side, the US dollar remains under pressure and is by far the weakest currency so far in 2026.
Commodities continue to paint a very strong picture. Oil is extending its rally and is now up roughly 12% year to date. Gold remains extremely strong and is trading at new all-time highs. Silver is also pushing higher, gaining sharply and flirting with its own record levels. At this stage, there are still no technical signs of a meaningful reversal in the metals complex.
Finally, the earnings calendar remains busy on Thursday. Apple will report earnings after the market close, while Mastercard, Caterpillar, and SAP are scheduled to publish results before the market opens.
That’s the market setup as we head into the European session on Thursday, with the Fed now behind us and earnings back in the driver’s seat.