European Indices Decline as U.S. Markets Await Retail Sales Data

Good morning traders, and welcome to Tuesday’s market briefing. Today’s calendar highlights are focused on North America, with Canadian inflation data expected to rise by 0.1% month-on-month and U.S. retail sales anticipated to drop by 0.3%. These key figures are set to impact the North American currencies significantly.

The European indices are seeing sharp declines this morning, with the DAX, FTSE, and CAC all moving lower. American indices are also trending downwards, as indicated by futures, but they remain further from their key mid-term support levels compared to their European counterparts.

In currency markets, the Swiss franc, U.S. dollar, and euro are showing strength, while the Japanese yen, New Zealand dollar, and Australian dollar are underperforming. Commodities are presenting mixed signals: oil is breaking through key support levels, hinting at potential further declines, while precious metals like gold and silver are maintaining their strength. Notably, gold is outperforming silver.

There are several intriguing setups to watch in the forex market. The USD/CAD pair is on an upward trajectory, while EUR/USD is attempting a bearish correction, suggesting a possible end to its triple top formation. Additionally, USD/JPY hit new mid-term lows but quickly rebounded, indicating potential for a bullish upswing.

Source: https://www.axiory.com/analytics/market-news/european-indices-decline-as-u-s-markets-await-reta