Early-week trading opened with a tentative rebound in risk sentiment after last week’s decline. The US dollar’s initial strength faded, and the DXY turned lower again from a key resistance zone, a move that has supported risk appetite. The Australian dollar started firmer against the greenback, while cryptocurrencies pushed higher as buyers returned, even as the broader tone stayed mixed. Metals hovered near support levels, with gold showing relative strength, and oil traded higher, while the yen strengthened.
Focus on Earnings and Economic Data
Attention is shifting to corporate earnings and economic data that could reset positioning. Canadian inflation is in focus and may shape expectations for the Bank of Canada as well as the direction of USD/CAD. In the US, forthcoming results from Netflix, Tesla, Meta Platforms, Procter & Gamble and 3M are on the radar, with technology earnings watched closely given concerns about the durability of the AI rally and infrastructure costs.
Key Market Indicators and Outlook
Markets are also tracking whether the DXY breaks resistance or extends its downturn, while gold’s ability to hold support remains a near-term barometer.
