I hope you enjoyed your weekend and welcome to our market update for this holiday-shortened week. As you know, it will most likely be a slow week, especially from Wednesday onward when the holidays begin and trading activity usually fades. But we could still see some risk-on flows resume, particularly after the strong rebound and turnaround in stocks last week, while the dollar can come down from resistance.
If you recall, the US unemployment rate came out higher than expected last week, and CPI also softened more than forecast. All of this supports the view that the Fed could continue with its cutting cycle, and that narrative is still driving markets into year-end. With the dollar under pressure, we are also seeing metals trading nicely to the upside. We also see JPY weakening despite the BOJ hiking rates on Friday. For now, the market seems to be ignoring BOJ, and moves in yen crosses are mostly linked to risk-on flows.
In our latest webinar for this year, I will talk about lot of FX pairs, SPX, GOLD, SILVER, Crude and BITCOIN.
I am working on 2026 Elliott wave video analysis. Dont forget to put yourself on the newsletter list here:
Grega
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