Markets turn quiet as investors enjoy Christmas break


Here is what you need to know on Friday, December 24:

After closing the first three days of the week in the negative territory, the US Dollar Index steadied above 96.00 after the data from the US showed that the Core PCE inflation rose at a stronger pace than expected in November. Major financial markets will be closed on Christmas Eve on Friday and no action is expected.

The US Bureau of Economic Analysis reported on Thursday that the Core Personal Consumption Expenditures (PCE), the Fed’s preferred gauge of inflation, jumped to 4.7% on a yearly basis in November from 4.2%. This reading surpassed the market expectation of 4.5%. Other data from the US revealed that the weekly Initial Jobless Claims remained unchanged at 205K, New¬†Home Sales increased by 12.4% in November and Durable Goods Orders rose by 2.5% in the same period.

EUR/USD fell below 1.1300 in the American session on Thursday but ended up closing the day virtually unchanged at 1.1330. The pair remains on track to register weekly gains.

GBP/USD gathered bullish momentum this week on some positive Brexit headlines and easing worries over additional coronavirus-related restrictions in the UK. The pair is up more than 100 pips since the beginning of the week and seems to have settled above 1.3400.

Gold tested $1,800 with the initial reaction to US inflation data on Thursday but didn’t have a difficult time holding above that level. The 10-year US Treasury bond yield came within a touching distance of 1.5% on Thursday. The bond market will also be shut on Christmas Eve.

USD/JPY continues to trade sideways near the monthly high it set at 114.50.

Bitcoin gained nearly 5% and stays afloat above $50,000. Ethereum continues to trade near the upper limit of its 10-day-old range around $4,000.