First Full Week of 2025: Optimism Returns to Markets

Hello traders, and welcome to the first full week of trading in 2025. Monday kicks off with a noticeable reversal on indices, signaling a promising start to the new year. After the declines observed at the close of 2024, we now see a bullish rebound. Investors appear to be entering 2025 in an optimistic mood, which is helping to lift market sentiment across the board.

The optimism extends to oil as well. Oil prices have been rising steadily since the start of the year, although today begins with a minor bearish correction. On the other hand, metals are experiencing more pronounced bearish pressure. Both gold and silver are retreating on Monday, with this decline gaining momentum, suggesting further downside could be in store.

On the currency market, Monday highlights strength in commodity-linked currencies like the Canadian dollar, New Zealand dollar, and Australian dollar. Meanwhile, traditional safe havens—the Japanese yen, Swiss franc, and American dollar—are showing weakness, reflecting the positive risk sentiment dominating markets.

Looking at the macroeconomic calendar, as is typical for Mondays, the schedule is mostly quiet. However, there is one key figure to watch: the German preliminary CPI, with inflation expected to come in at 0.3%. This release could provide some direction for the euro as the European session unfolds.

The week ahead, however, promises more significant economic events. On Wednesday, we’ll get inflation data from Australia and the FOMC meeting minutes, both of which will attract attention. Friday will culminate in the release of non-farm payrolls in the U.S., a critical data point for traders. The second half of the week will undoubtedly bring more action, but for now, markets are setting the tone with early-year optimism.

Let’s see if this positive momentum can carry through the week!

Source: https://www.axiory.com/analytics/market-news/first-full-week-of-2025-optimism-returns-to-market