As 2024 draws to a close, financial markets remain relatively stable at the beginning of the European trading session on Thursday (December 27, 2024). Even without the release of significant economic data from the United States during this evening’s trading, there is still potential for increased volatility.
GOLD
Gold (XAUUSD) prices fell during the European session, reaching a daily low of $2,623.63 per troy ounce. Compared to Thursday’s closing price, Gold has decreased by $9.38 or 93.8 pips.
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Yesterday, Gold experienced a price increase due to the escalating conflict between Russia and Ukraine, which spurred demand for safe-haven assets, thus driving up Gold prices. Reports indicated that Russia attacked Ukraine’s energy systems on Christmas Day, which prompted U.S. President Joe Biden to instruct the Department of Defense to continue supplying arms to Ukraine.
However, there has been no further escalation today, resulting in a downturn for Gold. Market focus is returning to the outlook of The Fed’s monetary policy for next year. The release of lower-than-forecast unemployment claims in the U.S. is leading the market to anticipate that The Fed may only reduce interest rates twice in the coming year, suggesting that Gold prices could continue to face pressure.
OIL
Crude oil prices (CLS10) rose to $70.02 per barrel at the start of the European session. Positive sentiment for oil emerged after the World Bank raised its economic growth forecast for China for 2025.
This has generated optimism regarding robust oil demand from China, creating a favorable sentiment that is expected to persist in tonight’s trading.
EURUSD
The EURUSD pair is trading within a narrow range of 1.04051 – 1.04257 as the European trading session begins.
The U.S. dollar has strengthened following the release of unemployment claims data yesterday. The report indicated that 219,000 people applied for unemployment benefits in the week ending December 21, an improvement from the previous week’s 220,000 and better than the Trading Central forecast of 223,000.
Given this situation, there is potential for EURUSD to remain under pressure during tonight’s trading.
GBPUSD
The GBPUSD pair fell to 1.25046 at the start of the European trading session before regaining some ground.
The GBPUSD is edging closer to its lowest level in the past seven months, as a strong U.S. dollar following the unemployment claims data suggests that there is still a likelihood of further declines for GBPUSD during tonight’s trading.
USDJPY
USDJPY declined at the beginning of the European session, reaching a daily low of 157.509. Compared to Thursday’s closing price, USDJPY is down by 502 points (50.2 pips).
Data released from Japan this morning varied, but retail sales in November surged 2.8% year-on-year (YoY), which bolstered the yen and prompted profit-taking in USDJPY, which had earlier peaked at a seven-month high.
With no significant economic data expected to be released, the potential for continued profit-taking remains as trading progresses tonight.
Насдак
The Nasdaq index dropped at the beginning of the European trading session, hitting a daily low of 21,897. Compared to Thursday’s close, Nasdaq has fallen by 85 index points.
Profit-taking activity initiated on Thursday has triggered this decline. It is worth noting that the Nasdaq had recently approached its all-time high of 22,151 reached on December 16.
Nevertheless, U.S. equity indices are currently experiencing what is known as the Santa Claus Rally, a period that typically encourages gains up until the start of the new year.
Market participants are certainly taking note of this annual occurrence, providing a positive sentiment towards the Nasdaq. Therefore, it is possible that the Nasdaq’s decline may prompt buying activity.
For a thorough analysis and insights into the Santa Claus Rally and its effects on Gold and currencies, readers may explore comprehensive articles dedicated to this phenomenon.
