The week saw a slew of central banks reporting surprises. The Fed indicated that next year there will be up to 3 interest rate rises, followed by the Bank of England raising interest rates. Then the ECB reported in less dovish tones than the market expected
Eventually it took a late sell off in stocks on Friday for the US Dollar to shine through.
Canada Dollar was the worst performer as Oil prices failed to find any direction and short term rate spreads contracted dramatically.
Markets still have a growing undertone of Omicron concerns and if / when further restrictions maybe brought in coupled with continued inflationary pressures. Central banks are beginning to have their hand forced in dealing with inflation concerns.
The week ahead has less economic data as the last trading week before the festive break. The markets will be thin on volume so Omicron headlines and further restriction could lead to increased volatility
Merry Christmas all.
Weekly Majors Market Performance
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