As Christmas approaches, market activity is generally stable during European trading on Tuesday (December 24, 2024). This time of year often sees reduced transaction volumes compared to usual, which can sometimes lead to significant price movements or increased volatility.
Additionally, the phenomenon known as the Santa Claus Rally is affecting financial markets’ performance currently.
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GOLD
Gold prices (XAUUSD) are trading within the range of $2,612 to $2,621 per troy ounce as European trading begins. No fundamental changes have significantly impacted Gold, and the movement of the US dollar continues to be a decisive factor for price direction.
As previously noted in the Macro Overview, recent economic data from the United States reported disappointing figures that should have suppressed the US dollar. November’s durable goods orders fell by 1.1%, much worse than the forecast of -0.2% from Trading Central, and compared to a growth of 0.8% the previous month.
Consumer sentiment for this month was reported at 104.7, lower than November’s 112.8 and below the Trading Central forecast of 112.4.
If the US dollar weakens in evening trading, Gold may benefit from positive sentiment.
OIL
Oil prices (CLS10) increased at the start of European trading, reaching a daily high of $69.82 per barrel. Despite the rise, Oil prices are still under pressure due to anticipated weak demand for the coming year. This sentiment may continue to weigh on Oil during tonight’s trading session.
EURUSD
The EURUSD currency pair fell at the beginning of European trading, hitting a daily low of 1.03887. This represents a drop of 175 points (17.5 pips) from Monday’s closing.
The decline in EURUSD came after European Central Bank (ECB) President Christine Lagarde indicated that the bank is getting closer to achieving its medium-term inflation targets.
This statement has strengthened expectations that the ECB will aggressively cut interest rates next year, which casts a negative outlook on EURUSD.
GBPUSD
The GBPUSD pair remains in a narrow range of 1.25249 – 1.25446 as European trading commences. This stability comes despite forecasts suggesting a worsening economic outlook for the UK, following a revision of its gross domestic product (GDP) to 0% quarter-on-quarter (QoQ) for the previous third quarter, down from an initial estimate of 0.1%.
The steady GBPUSD trading indicates that market participants are also taking into account US economic data that has come in below forecast, presenting possibilities for the Fed to cut rates more than twice next year. Thus, overall sentiment for GBPUSD remains relatively positive this evening.
USDJPY
Reflecting previous Macro Overview projections, USDJPY declined to 156.888 at the start of European trading after peaking at 157.389 earlier in the day.
Given the recent US economic data that fell short of expectations, there could still be downward pressure on USDJPY during tonight’s trading.
Насдак
The Nasdaq index is rising at the start of European trading, reaching a daily high of 21,803. The US stock market is currently experiencing the Santa Claus Rally, which typically drives increases through the start of the new year.
Investors are certainly mindful of this annual occurrence, contributing to positive sentiment towards the Nasdaq.
