Markets Hold Ground After Strong Week as Sentiment Stays Positive

Good morning traders, and welcome to the final trading day of what’s been a strong and eventful week across global markets.

We’re opening Friday with flat index futures, but the overall sentiment remains very positive following a series of strong sessions throughout the week. Major indices are holding near mid- and long-term highs, supported by resilient earnings, easing inflation data, and upbeat macro reports. Confidence remains high heading into the weekend, with buyers still in control of the broader trend.

In the currency market, we’re seeing a pullback in the U.S. dollar during the early hours of Friday’s European session. Despite today’s softness, the greenback had a positive week, lifted by strong momentum earlier on. The Canadian dollar is also weaker this morning, although it too posted gains earlier in the week. In contrast, we’re seeing renewed strength in the Australian dollar, Japanese yen, and New Zealand dollar. Notably, the Japanese yen is finishing the week as one of the top performers, reflecting consistent demand throughout the past few days. The British pound also had a solid week, whereas the euro continues to struggle, lagging behind most major peers.

On the macro front, Thursday delivered several key figures. U.S. PPI (Producer Price Index) came in below expectations, suggesting continued easing in cost pressures. Meanwhile, U.S. retail sales surprised to the upside, indicating ongoing strength in consumer spending. Across the Atlantic, UK GDP surprised to the upside as well, further supporting sterling.

As we head into Friday’s U.S. session, the main focus will be on the upcoming University of Michigan Preliminary Consumer Sentiment, which may give us further insight into consumer confidence and inflation expectations.

To sum up, we’re closing the week with bullish sentiment intact, broad strength in risk assets, and some sector-specific rotations happening across currencies and commodities. Traders may see some consolidation ahead of the weekend, but the tone remains constructive.

Source: https://www.axiory.com/analytics/market-news/markets-hold-ground-after-strong-week-as-sentiment