A very quiet trading period between Christmas and New Year, with skeleton crews operating across most markets. The ‘Santa Claus’ rally began just before the Christmas closure and may well continue into the New Year. There are little economic data releases and not much to spook markets. It is amazing how quiet markets and news, in general, go when the media furlough. The US Dollar ruled supreme, to close out the year, as inflation and bond yields continue to rise. Energy and deficit/debt spending will be the key driver of inflation, going into 2025. The EUR fell back to 1.0400, in search of a 2025 possible parity move, while the GBP stumbles around 1.2500.Japanese markets remain open over the holiday period, with readings on inflation, unemployment and Industrial Production, all being released later today. The Yen has continued to weaken into the quiet period, crashing to 158.00. The stronger reserve has knee-capped the commodity currencies, as the AUD stumbles towards 0.6200, while the NZD heads back towards lows around 0.5600. Closing on lows are not a good sign for these currencies.
