Santa Rally Begins: Indices Start the Christmas Week on a Positive Note

Hello traders, welcome to the festive Christmas week! Markets are gearing up for a quieter period, with closures varying by region. Most markets will be closed on Wednesday, and some will remain closed on Thursday. As expected, the economic calendar is relatively light today, though we do have a few key data points: Canadian GDP, forecasted at 0.2%, and the CB Consumer Confidence report from the US, anticipated at 112.9%. Tomorrow will bring a few additional data releases, but with markets closed midweek, activity will taper off significantly.

The markets opened today on a positive note following a sharp reversal in indices on Friday. This momentum continues into Monday, setting the stage for the highly anticipated Santa Rally. Indices are showing strength, and sentiment remains optimistic as we approach the holiday break.

Commodities are also rebounding after suffering notable declines in recent days. Oil and precious metals are experiencing bullish reversals, supported by improved market sentiment.

In the currency market, we’re seeing weakness in traditional safe havens like the Japanese yen and Swiss franc. Meanwhile, the Australian dollar, euro, Canadian dollar, and US dollar are starting the week in the green.

This week is expected to be quieter, with lower liquidity potentially leading to sharper movements. Traders should exercise caution and prioritize risk management. The main focus will likely remain on indices and the potential continuation of the Santa Rally. Let’s see how the week unfolds, and trade safely in this unique and festive period!

Source: https://www.axiory.com/analytics/market-news/santa-rally-begins-indices-start-the-christmas-wee