The U.S. Dollar is trading in weaker ranges across the board as markets enter a week marked by the Christmas holiday, thus causing lower activity as well as liquidity.
While equity markets are looking to be revived by a bit of a last-minute rally, it is possible that losses in December for Nasdaq and other exchanges are erased. After some doubt over A.I.’s future, investors seem to have jumped back on to tech as well as mining stocks. Additionally, overnight sessions in Europe and Asia saw the prices of metals, like Gold, climb to records while oil prices also surged based on heightened tensions between the U.S. and Venezuela after tankers were seized.
Tomorrow will feature key data points with the ADP Weekly Employment Change at 8:15AM right before the 8:30AM release of Q3 Gross Domestic Product, Personal Consumption as well as Personal Consumption Expenditures. There will also be the reading for November Durable Goods and at 9:15AM October’s Industrial Production. December Consumer Confidence and other surveys will be out at 10AM. We do expect things to significantly slow down once we get to Christmas Eve. Please see our hours of operation below. We will be closed on Thursday for Christmas Day.
What to Watch This Week…
- Holiday Hours: 8:30a – 3p EST Wed, Dec 24th | CLOSED Thurs, Dec 25th
- Monex USA Online is always open
JPY ⇓
The Japanese Yen has sunk ever since the Bank of Japan’s meeting that resulted in a much-awaited interest-rate hike. Counter to theory and everyone’s expectations, the Yen has been depreciated after the BOJ felt comfortable increasing borrowing costs to their highest in 30 years. The currency is currently trading around its weakest point against the Buck since mid-January. Japan’s Chief Currency Official, Atsushi Mimura explained to reporters that the sinking of Yen value is alarming, which is leading to speculation over how soon the BOJ will choose to begin a FX intervention, which tends to be a highly costly operation. In recent attempts, the effects have not materialized in much JPY appreciation.
EUR ⇑
The Euro is climbing and is getting near its highest level over the Buck since end of September. The shared currency has benefitted from a bit of central bank policy divergence with the Fed as European Central Bank officials seem to be staying away from cuts and easing. There is currently no chance of reductions coming at the ECB’s next meeting on February 5th, but there is talk among economists that voting members may warm up to a rate increase in order to combat inflationary pressures.
