What you need to know on Friday, December 24:
The dollar fell amid positive market mood with all global indices posting daily gains. The exception was USD / JPY, as the pair rose and settled at 114.45, approaching its yearly high.
Yields on US Treasuries advanced, with the 10-year yield currently hovering around its daily high of 1,501%. The advance followed US inflation-related figures as the core PCE price index jumped to 4.7% in November from 4.2% previously and above the 4.5% expected.
Other macroeconomic figures from the US were also encouraging, such as durable goods orders for November, which rose 2.5%, beating expectations. Initial jobless claims for the week ending December 17 printed at 205,000 as expected. Additionally, the Michigan consumer sentiment index for December was revised up to 70.6 from 70.4.
On the COVID-19 front, news reported that the US Food and Drug Administration authorized a second drug, a drug from Merck called Molnupiravir, to treat covid at home after approving the Pfizer survey on Wednesday. . However, Merck’s pill is less effective and carries more risks than Pfizer’s. The Mood was based on research conducted in South Africa, which found it to be a milder strain than Delta.
The euro is among the dollar’s weakest rivals, confined to familiar levels. The pair is currently trading around 1.1330, after briefly piercing the 1.1300 level. GBP / USD peaked at 1.3437, a new December high, holding the 1.3400 level at the end of the day. The pound continued to rally thanks to upbeat UK growth figures released on Wednesday.
Higher stocks supported currencies pegged to commodities. AUD / USD hit 0.7250, while USD / CAD rose to 1.2797, both holding close at the end of the day.
Japan will operate normally, although other Asian markets will close early. Most of the US and European markets will be closed on Fridays in the middle of the Christmas holidays.
Volatility is expected to remain subdued in the coming days, with the possibility of sudden short-duration moves in the middle.
Gold is trading near an intraday high of $ 1,810 a troy ounce, ready to extend gains once past the $ 1,815 resistance. Crude prices maintained their positive tone, the WTI registered a modest advance and stood at $ 73.75 a barrel.
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