Yen Weakens While European Futures Point to Positive Start

Good morning, traders, and welcome to the start of a new week! The markets have opened on a quiet note this Monday, with little movement following the weekend. This lack of activity isn’t surprising, given that there haven’t been any major developments recently. However, the week ahead holds some potential excitement, especially on Wednesday when the U.S. inflation numbers are set to be released. Expectations are that the annual inflation rate will remain steady at 3%. Until then, the economic calendar is relatively light, with no significant data or earnings reports scheduled for today.

Taking a closer look at the markets this morning, European futures are poised to open in positive territory, while U.S. futures are mixed, hovering near neutral. Despite this, a generally positive start is expected in Europe. In the currency market, we’re seeing strength in the New Zealand Dollar (NZD), Australian Dollar (AUD), and British Pound (GBP), while safe-haven currencies like the Japanese Yen (JPY) and Swiss Franc (CHF) are losing ground—a continuation of last week’s trend.

On the commodities front, oil is kicking off the week on a strong note, while precious metals are starting in the red. This divergence is worth noting as it could set the tone for the week ahead. One of the key areas to watch will be the Yen, which may continue to weaken following last week’s price action, where we saw a hammer candlestick formation that typically signals further declines. Additionally, attention will be on the indices, which began a bullish correction last week, to see if this positive momentum can carry forward as the week unfolds.

Source: https://www.axiory.com/analytics/market-news/yen-weakens-while-european-futures-point-to-positi