Markets opened a shortened, final trading week of the year on a positive note. Asian bourses were boosted, as further Covid restrictions lifted in China, which set the global trend. European markets were positive, as was the US. US economic data continued to disappoint, with the Dallas Fed Manufacturing Index contracting sharply (18.8%), while the Case Shiller Home Price Index also contracted 0.8%. US Bond Yields continued to creep north, with the 10 year hitting 3.8%, while the US Dollar was softer. The EUR rose up to 1.0650, while the GBP held on to 1.2000.
Japanese data was similarly bleak, with Retail Sales contracting 1.1% for November, while Home Sales fell 1.1%, for the same period. The Yen continues to trading strongly, boosted by the actions of the Bank of Japan, which made slight, but symbolically significant changes to monetary policy, at their last meeting. The Yen traded around 133.00, while commodity currencies stabilised, following the positive news from China. The AUD consolidated above 0.6700, while the NZD loos to hold above 0.6250. There is a dearth of significant economic data releases, in this holiday trading period and very thin trade.