Investors should keep an eye on price movements in U.S. markets during the middle of the last week of December.

Investors should keep an eye on price movements in U.S. markets during the middle of the last week of December.

29.12.2021

Yesterday, the three major U.S. stock indices posted mixed results, with the Nasdaq falling for the first time in five trading days. It closed at 15,781 points, down 0.56% from the previous day. Following the previous day’s decline in U.S. stocks, the Nikkei 225 also fell by about 0.89% to the 28,800-yen level. The fear index (VIX) rose slightly to 17.5.

In the foreign exchange market, the Dollar Index is trading sideways around 96.1, and the U.S. dollar has shown little movement against the pound, with GBP/USD trading within a range of 1.341 to 1.346. On the 4-hour chart, GBP/USD appears to be in an uptrend, supported by the 20-day moving average; however, since the RSI is hovering near 70—a high level—we should be wary of a pullback.

No economic indicators or key speeches are scheduled for the European session today. However, once the U.S. session begins, the following events are scheduled: U.S. wholesale inventories (flash estimate) at 22:30, pending home sales at 24:00, weekly crude oil inventories at 24:30, and a 7-year Treasury auction at 27:00.As liquidity tends to dry up toward the end of the year, we will closely monitor the situation to determine whether any sudden price movements will occur in the foreign exchange market before the new year.