Get ready for an exciting week ahead with holiday-thinned trading, a shortened week, and a light economic calendar that point to abnormal price action in the last days of 2023. Will Santa’s rally continue? Will the US Dollar remain under pressure?
Plan ahead with these essential insights for next week:Â
Expect a quiet week on the economic calendar. Holiday-thinned trading may lead to limited price action and potential false breakouts, with most trading platforms closed on Monday.Â
Equity prices had a positive week, with the Dow Jones hitting all-time highs and US Treasury yields moving lower. The US Dollar Index (DXY) continues to face downward pressure, while market repricing expectations from the Federal Reserve (Fed) in 2024 keep the Greenback under pressure.
Inflation data from the US this week is just the beginning, with a light economic calendar that includes home prices (Tuesday), Jobless Claims (Thursday), and the Chicago PMI (Friday).
Market dynamics saw the EUR/USD rise above 1.1000, a key level to watch, while the GBP/USD faced resistance at 1.2700. And with the Japanese Yen showing downside risks, there’s much to keep an eye on.
No relevant economic reports are due from Canada, Australia, and New Zealand, while the USD/CAD tumbled, marking the lowest weekly close since August.
