Markets Steady After Central Bank Shake-Up

Hello traders, welcome to Friday. We’re closing out the week with a wave of volatility following a busy Thursday packed with key central bank decisions. The most notable move came from the Swiss National Bank, which cut rates by 25 basis points. Despite the cut being largely expected, the Swiss franc weakened sharply after the announcement.

We also had the Bank of England decision, where rates remained unchanged at 4.5%, as anticipated. However, the pound saw some fluctuations, with traders parsing through the monetary policy summary for any forward guidance. Meanwhile, US jobless claims came in line with expectations, offering no major surprises.

On the market side, American indices attempted a rebound during the US session, recovering earlier losses and managing to close in green territory. The mood in Europe, however, was more cautious, with DAX and other benchmarks pulling back slightly after recent gains.

As for Friday’s calendar, it’s relatively quiet. We already got Japan’s national core CPI, which came in slightly above expectations at 3.0% vs. 2.9%, reinforcing the idea that inflationary pressures are lingering in Asia. We’re now awaiting Canada’s retail sales, expected to show a sharp contraction to -0.4%, which could be a mover for the Canadian dollar, especially after its recent strength.

Looking across markets this morning, commodities are mixed. Oil is holding on to recent gains, while gold is consolidating near all-time highs. On the currency front, NZD and CAD are strong out of the gate, while EUR and AUD are under mild pressure.

So far, Friday opens with a cautious tone. Most traders will likely use the day to manage existing positions after a hectic week filled with macro catalysts. Volatility may ease into the weekend unless Canadian data surprises or we see unexpected headlines from geopolitics or trade.

Source: https://www.axiory.com/analytics/market-news/markets-steady-after-central-bank-shake-up