The currency markets remain mixed heading into the last trading day of the year. Flows are going to be very light and driven by book balancing so conditions are likely to be choppy but probably without too much direction. As we said on Friday though, if the Euro breaks 1.1480, we could see an acceleration higher. The Aud$ still looks very heavy but I would be surprised to see it much below 0.7000 heading into the NY.
While I would not be keen to being overly involved in the FX markets today, the stock markets look as though they could build on last week’s move higher and buying dips does seem to be the plan. Again, volume is going to be light and any moves could become exaggerated so be nimble.
Gold and Silver both look as though they have further upside potential in the days/week’s ahead although the short term momentum indicators do look a bit toppish so buying dips would seem to be the plan.
Although these views may play out, and the trend table will be produced during open market sessions, there will be no trade recommendations until Wed 2 January.