Trading during the holiday season can be hazardous to your pocketbook. The times around Christmas and New Year’s are often challenging periods in the markets. But, if we’re patient, there’s always an opportunity to be had. Here are three pre-Christmas trades that give us a chance to cash in ahead of December 25th.
Tuesday
This week, we have a key 24-hour period spanning from Tuesday’s Eurozone session to Wednesday’s UK session. During this time, both EU CPI and UK CPI are due out. Will these figures match the flat US CPI number from last week? If not, be ready for the EUR and GBP to rally against the Greenback.
Key Market: EUR/GBP
Wednesday
One of the featured metrics that economists use to predict recessions is consumer confidence. When consumer confidence lags, consumption and growth follow suit. Wednesday’s CB Consumer Confidence numbers are sure to move markets as traders price the odds of a recession in 2024.
Key Market: US100
Friday
Friday is this week’s key session, highlighted by the PCE Price Index release. On the heels of a flat November CPI report, PCE is expected to show further evidence of falling prices in the US. But will they? More than likely, yes. Barring a major surprise, the Greenback may be in for more bearish extension. And, that means rising values for commodities and risk assets.
Key Market: XAU/USD
Bottom Line
Holiday trading can be tricky. Don’t let it get in your pocketbook! Stay disciplined and stack a few green pips under the tree. The best holidays are spent with family, friends, and a well-stocked trading account. Make sure that your Christmas is as merry as it can be.
Right now, our end-of-year market read is simple: stocks and commodities are up, US dollar is down. That’s all from here; trade well, and we’ll catch you next week!
