The ‘Santa Claus Rally’ materialised and won back the losses markets suffered from the ‘omicron virus’ scare. Equity markets rallied strongly, to close out the week, leading into Christmas. Commodity prices also surged, on improved demand, boosting the associated currencies. The AUD regained 0.7200, while the NZD held onto 0.6800.
US PCE came in at a record 5.7%, which was largely expected and ignored by market players. The Fed will need to act aggressively in 2022 to arrest the spiralling inflation savaging the US economy. The US Dollar was steady, with the EUR trading around 1.1300, while the GBP drifted back below 1.1400.
The coming week should be quiet, as is normally the case between Christmas and New Year.