Following a volatile week marked by central bank updates, traders are bracing for the week ahead, even as the Christmas holidays break up the trading calendar. Despite the anticipated lull in activity due to multiple trading center closures and short-staffed desks, a few notable risk events and the persistent threat of geopolitical developments could still lead to market movement.
Below is a comprehensive day-by-day breakdown of this week’s major risk events:
Monday, December 23, 2024
- Asian Session:
- No significant data releases scheduled.
- European Session:
- A quiet day expected, but Bank of England’s Quarterly Bulletin will garner attention from sterling traders.
- U.S. Session:
- Canadian GDP data to be released shortly after the New York open, a key highlight for the day.
- U.S. CB Consumer Confidence Data is also on the calendar, drawing focus later in the session.
Tuesday, December 24, 2024 – Christmas Eve
- Asian Session:
- Reserve Bank of Australia (RBA) Monetary Policy Meeting Minutes will be released midway through the morning, offering insights into the central bank’s stance.
- European Session:
- German markets close early, marking the start of holiday trading. No significant data releases are expected.
- U.S. Session:
- A trio of key economic reports is due:
- U.S. Durable Goods Orders
- New Home Sales
- Richmond Manufacturing Index
- A trio of key economic reports is due:
Wednesday, December 25, 2024 – Christmas Day
- Most major trading centers, including the U.S. and Europe, will be closed, leading to dramatically reduced market liquidity.
- Japanese Markets:
- Trading remains active, with a potential for volatility as Bank of Japan Governor Kazuo Ueda is scheduled to speak.
- The yen may experience notable movements due to the reduced global trading activity.
Thursday, December 26, 2024 – Boxing Day
- Market Closures:
- Most major markets, including European and Canadian markets, remain closed.
- U.S. markets reopen, though liquidity conditions are still thin.
- U.S. Session:
- Key economic releases include:
- Weekly Unemployment Claims
- Oil Inventory Data
- Key economic releases include:
- FX traders should remain cautious of potential sharp moves due to the thinly traded markets.
Friday, December 27, 2024
- Asian Session:
- Japanese markets remain in focus with the release of Tokyo CPI data, a critical economic indicator.
- European and U.S. Sessions:
- While markets are technically operational, liquidity is expected to remain subdued.
- Traders will monitor geopolitical developments closely, as any major updates could provoke sharp, unexpected market reactions.
This week may seem subdued on the surface due to the holiday schedule, but markets can still surprise. Reduced liquidity often leads to unpredictable price swings, making cautious trading strategies more crucial than ever. Stay alert to scheduled data releases and potential geopolitical shocks as the year draws closer to an end.
