There is some moderate profit-taking across some assets in line with expectations as traders unwind positions ahead of the seasonal break (annual holidays) for financial markets. It is important to be mindful that due to Christmas falling on Monday this year, that Christmas Eve in terms of a working day for some territories can begin from tomorrow (Friday). So its possible that traders will close more positions today. Likewise, Boxing Day falls on Tuesday next week. Main asset that appears to be likely to suffer from softness at this stage is World Markets (Indices especially in US) because of how much hype investors have priced into their expectations regarding US Federal Reserve interest rate policy 2024. (Remember that November was the best month for many global markets in approximately 3 years so a correction is possible).While the FED has by most accounts prepared us that it might begin to cut US interest rates from March 2024, the economic data from several standpoints is still robust (especially when compared to its developed peers). As usual, we never say never to anything in international finance. We can expect for the potential of thin liquidity over the coming trading sessions. The trading ranges for this week have been tight in comparison to some of the material moves we have seen over the final quarter of 2024. Which is normal considering the Festive Season.
