From Quiet Start to Explosive Action: Indices, Commodities Heat Up, Forex on Edge

By Tomasz Wisniewski|

Published: May 24 2023, 05:38 GMT+0

From Quiet Start to Explosive Action: Indices, Commodities Heat Up, Forex on Edge

After a relatively quiet start to the week, Tuesday and Wednesday have finally brought some much-anticipated action in the markets. Exciting and promising movements are evident in indices and commodities, and it seems only a matter of time before we witness increased volatility in the Forex market as well.

Yesterday’s economic calendar was filled with PMI releases from leading economies. Generally, services PMI figures surpassed the 50 mark and tended to meet or exceed expectations. However, manufacturing PMI readings fell below 50, disappointing with lower values than anticipated. Today’s calendar is eventful for three currencies. We have already received the rate decision and statement from the Reserve Bank of New Zealand (RBNZ). As expected, there was a 25 basis point increase, but surprisingly, the New Zealand Dollar (NZD) experienced a sharp drop and is currently the weakest currency in the pack.

In a few minutes, we will also receive the inflation figures from the UK, which are expected to decline from 10.1% to 8.2%. Later today, another influential event for the British Pound (GBP) will be a speech by the Bank of England (BoE) Governor Bailey. The day will conclude with the release of the Federal Open Market Committee (FOMC) Meeting Minutes from the United States, which will play a significant role in shaping the direction of the US Dollar (USD) today.

Tuesday witnessed a notable reversal in indices, potentially signaling the start of a larger correction. The S&P 500 failed to sustain its position above 4190, which can be viewed as a negative sign. The Nasdaq is currently forming a double top pattern, with the neckline already breached. The CAC is currently testing the 7350 support level, and a breakout could pose significant risks in the mid-term.

As mentioned earlier, intriguing movements are also observed in commodities. Gold and Silver are currently experiencing upward momentum, with Gold utilizing a double bottom formation for its rise, while Silver showcases a V-shaped reversal. Additionally, optimism can be seen in the Oil market, where Brent crude is trading at its highest levels since May 2nd.

Source: https://www.axiory.com/analytics/market-news/from-quiet-start-to-explosive-action-indices-commo

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