A Week of Wild Swings

Good morning, traders. Let’s recap the significant market events from Thursday and preview what lies ahead for Friday.

Thursday saw a whirlwind of economic data impacting the markets. The US GDP surprised to the upside, coming in at 2.8% against an expected 2%, while durable goods orders disappointed with a sharp decline of 6.6%, far below the forecasted 0.3%. This mixed data created a volatile trading environment. Meanwhile, the S&P 500 and NASDAQ continued their bearish trends, breaking key support levels, while the FTSE showcased resilience with a dramatic V-shaped recovery after hitting new lows.

On the currency front, Thursday marked a significant shift as the Japanese Yen, which had shown strength earlier in the week, weakened sharply. This reversal led to V-shaped recoveries in many Yen pairs, indicating a potential end to its midweek rally. The Australian and New Zealand dollars continued to suffer, with the AUD on its ninth consecutive bearish day. In the commodities sector, oil experienced a bullish reversal, in contrast to precious metals which remained under pressure.

As we look ahead to Friday, the economic calendar is light but still crucial. The Tokyo CPI met expectations at 2.2%, and the market eagerly awaits the US Core PCE Price Index, expected at 0.2%. This data point is key for assessing inflation and consumer spending trends. In the earnings calendar, we have reports from Colgate-Palmolive and 3M. Market participants will be keenly watching to see if Friday’s data can provide direction and stabilize sentiment after Thursday’s mixed economic signals.

Source: https://www.axiory.com/analytics/market-news/a-week-of-wild-swings