Reversal Gathers Pace, Dollar Dominates.

Tuesday opens with a quiet calendar once again, mirroring the calm start to the week. The only notable macro figure today is the ISM Services PMI from the US, expected at 51.5. While low on volume, the figure could still influence market sentiment if it deviates from expectations.

On the earnings front, a few names are in focus:

• Caterpillar posted earnings before the open – EPS slightly missed, but revenue came in higher. The stock is flat in pre-market trading, signaling muted trader reaction.

• Pfizer delivered a strong beat across the board. Pre-market gains of +2.2% show investors are pleased with the surprise.

• AMD will publish earnings after the close, adding to post-market volatility later in the day.

Now, the market’s key story: indices are reversing sharply higher. After Thursday and Friday’s sharp drop, Monday brought a meaningful rebound, and Tuesday is continuing that move. If momentum holds, this could go down as one of the shortest bear phases we’ve seen — a V-shaped reversal may be in play.

On the currency market, the US Dollar is clearly in charge. It’s gaining across the board, particularly against the Japanese Yen and the Euro, both of which are under pressure.

In commodities, there’s a clear divergence:

• Oil is sliding fast, breaking through key horizontal support, which could open the door to a deeper correction.

• Silver remains strong, continuing its bullish momentum.

• Gold started Tuesday with a pullback, but has since recovered some of those early losses, attempting to reclaim bullish territory as the US session approaches.

Source: https://www.axiory.com/analytics/market-news/reversal-gathers-pace-dollar-dominates