Markets Rebound on Trump Speech, Risk Sentiment Improves

Hello traders, welcome to Wednesday. The middle of the week is bringing a rebound across the markets, with futures pointing higher and sentiment turning cautiously optimistic. A key driver behind this recovery came from Donald Trump’s speech yesterday. In recent days, there had been growing market whispers and worries about the state of his health, with some fearing a serious illness. His appearance in good shape calmed investors and helped restore confidence, removing a layer of uncertainty around the White House.

As a result, indices are moving to the upside, reversing part of the recent weakness. On the currency market, the focus is on the British pound, which suffered a heavy sell-off on Tuesday but is now attempting a rebound. The same goes for most European currencies, which are staging a recovery. In contrast, the Japanese yen is the weakest currency this morning, with safe-haven flows fading as risk appetite improves.

On the commodity side, metals continue their positive run. Gold and silver are climbing higher, extending recent gains and benefiting from broad demand. Oil, however, remains negative today. After a very volatile Tuesday, where prices saw a sharp drop followed by an attempted rebound, oil is once again pushing lower. The volatility in crude remains high, keeping traders on their toes.

Looking at the macro calendar, today already delivered GDP data from Australia, which came in better than expected and gave a boost to the Australian dollar. Still ahead, traders will be watching Monetary Policy Report Hearings from the UK, and later in the US session, the focus will shift to Job Openings (JOLTS) data, expected at 7.38 million.

So far, Wednesday is shaping up as a day of recoveries and rebounds, especially for European currencies and global indices.

Source: https://www.axiory.com/analytics/market-news/markets-rebound-on-trump-speech-risk-sentiment-imp