Last week before Christmas starts with most recent moves’ correction

Last week was turbulent and volatile, but it was not a surprise as we had warned about it. All it took to anticipate it was one look at the macro calendar that was filled with great action from major central banks from all over the globe. The two which made the biggest impact were the FED and ECB. Both of them came more hawkish than expected, which was positive for their currencies but negative for stocks. As a result, they ended the week with a juicy bearish correction.

This week’s calendar is quite the opposite of the previous one, being rather empty. No surprise here, as it is the last trading week before Christmas. The only attractions throughout this week should be present on the Canadian Dollar, as we will get the inflation data and the GDP, but that will happen as late as Wednesday and Friday respectively. Today’s calendar had only one important piece of data – the German IFO business Climate and it has been already published. We got 88.6, which was slightly higher than the expected 87.6.

Markets start the new, possibly quiet week with corrections of the Thursday and Friday moves. Index Futures are climbing slightly higher. Currently, SP500 is up 0.4% and DAX is trading 0.6% higher. It does not change the current mid-term sentiment there, which is bearish. Quite unusual for end-of-the-year trading!

On the forex market, we have a slide on the American Dollar and the New Zealand Dollar. The biggest gainers are currently the British Pound, Australian Dollar, and Euro. The weaker Dollar is helping some commodities – gold, for example, is currently trading 0.25% higher, while silver is climbing higher twice as much. As regards metals, a notable gain can be spotted with copper who is currently up 1.4%. Not all commodities are enjoying the green color – natural gas, for example, is trading 6% lower.

We should not expect any fireworks today or throughout the rest of the week. The moves will be probably lower and less significant every day. Well, that is just what pre-Christmas trading looks like!