Trading resumes after the Christmas break, but activity remains limited as not all markets have reopened. However, the Forex market, select commodities, and the American Stock Exchange are operational, providing some movement in the market.
American indices are trading in the red, but this appears to be a mere correction following the impressive upswing just before Christmas. This pullback does not signify a shift in sentiment, as the overall mood remains positive. Traders are likely preparing for a continuation of this bullish trend, especially as liquidity and participation increase after the holiday period.
On the currency market, minor European currencies such as the Hungarian Forint and Czech Koruna are leading the way, showing significant strength. The American Dollar is also performing well, alongside the Swiss Franc. Conversely, the New Zealand Dollar, Japanese Yen, and British Pound are under pressure, rounding out the weaker side of the spectrum. This divergence highlights a shift in sentiment and potential trade setups for currency pairs.
Commodities are showing strength, with oil extending its upswing and both silver and gold climbing higher. This upward movement in precious metals suggests a continuation of safe-haven buying, possibly spurred by the still-muted volumes in other markets.
The economic calendar remains light as many global markets are still closed. The only notable release today is unemployment claims from the US, expected at 223,000. Until the American session opens, traders may experience limited volatility, but increased activity is anticipated once the US market comes online.
For now, patience is key, with expectations that higher volatility will emerge during the American trading hours.