Boxing Day in Asia: Dollar Stable, Oil Up, Gold Stalls

It was a quiet Asia session with limited market movement. The Focus shifted to the dollar, Oil, Gold, and unemployment claims data as the week saw muted holiday trading activity.

What happened in the Asia session?

However, with many financial markets across the Asia Pacific region closed for Boxing Day, Thursday’s session was relatively quiet. Moreover, the US Dollar Index (DXY) hovered around 108.15, showing little movement. Meanwhile, spot gold prices stalled upward, settling around $2,603.0 per ounce.

What does it mean for the Europe & US sessions?

Following a steady start of around $69 on Monday, crude oil prices rebounded on Tuesday, with WTI Oil rising nearly 1.3%. This benchmark reached $70.43 per barrel before closing at $70.10 for Christmas. So, US inventories reported a drawdown of 4.7 million barrels, marking a shift from two consecutive weeks of inventory builds. Further inventory reductions could support oil prices in the coming days.

The Dollar Index (DXY)

Key news events today

• Unemployment Claims (1:30 pm GMT)

What can we expect from DXY today?

Unemployment claims in the US showed a slight dip last week, falling to 220K from a high of 242K earlier in December. However, this week’s forecast for 223K suggests that claims may remain relatively unchanged. A lower-than-expected reading could further bolster the dollar, especially after the recent Federal Reserve rate cut.

Central Bank Notes:
On 18 December, the Federal Reserve lowered its target range for the Federal Funds Rate by 25 basis points to 4.25-4.50%. Despite some recent progress on inflation, the economic outlook remains uncertain, with GDP growth expectations revised higher for 2024 and 2025. So, the Fed closely monitors inflation, employment, and financial market conditions.

Next 24 Hours Bias
Weak Bearish

Gold (XAU)

Key news events today

• Unemployment Claims (1:30 pm GMT)

What can we expect from Gold today?

With a stable US labor market report expected, a dip in unemployment claims could fuel further dollar strength, which may weigh on gold prices. However, any deviation in the jobless claims data could provide short-term support for Gold, which has recently fluctuated around the $2,600 mark.

Next 24 Hours Bias
Weak Bullish

The Australian Dollar (AUD)

Key news events today

• Boxing Day Holiday (All Day)

What can we expect from AUD today?

Australian banks are also closed for the Christmas holidays, likely subduing trading activity in the Aussie dollar today. The Reserve Bank of Australia (RBA) focuses on inflation, expecting it to return to target by 2026, although growth remains weak.

Next 24 Hours Bias
Weak Bullish

Boxing Day in Asia: Dollar Stable, Oil Up, Gold Stalls

The Kiwi Dollar (NZD)

Key news events today

• Boxing Day Holiday (All Day)

What can we expect from NZD today?

New Zealand also observes Boxing Day, which results in muted trading for the Kiwi dollar. The Reserve Bank of New Zealand has reduced the Official Cash Rate (OCR) as inflation pressures ease, but economic growth remains below trend, with recovery expected in early 2025.

Next 24 Hours Bias
Weak Bullish

The Japanese Yen (JPY)

Key news events today

• No major news events

What can we expect from JPY today?

The yen continues to trade under pressure, with the USD/JPY pair maintaining elevated levels around 157.30. Furthermore, the Bank of Japan’s recent guidance on monetary policy remains accommodative, with economic growth expected to stay above potential, even as inflation shows moderate improvement.

Next 24 Hours Bias
Weak Bullish

The Euro (EUR)

Key news events today

• Boxing Day Holiday (All Day)

What can we expect from EUR today?

With European banks also closed for Boxing Day, activity in the Euro will likely remain muted. Moreover, the European Central Bank (ECB) has recently reduced its key interest rates. While inflation is on a downtrend, growth expectations remain subdued, with a forecasted growth rate of just 0.7% in 2024.

Next 24 Hours Bias
Weak Bearish

The Swiss Franc (CHF)

Key news events today

• Boxing Day Holiday (All Day)

What can we expect from CHF today?

Swiss banks are also closed for Boxing Day, leaving limited trading action in the Swiss Franc. The Swiss National Bank (SNB) has eased its monetary policy, reducing interest rates further as inflation has softened, but growth remains modest.

Next 24 Hours Bias
Weak Bullish

The Pound (GBP)

Key news events today

• Boxing Day Holiday (All Day)

What can we expect from GBP today?

Trading in the British pound is likely to be quiet due to the holiday. The Bank of England’s recent decision to maintain interest rates at 4.75% reflects concerns over persistent inflation, with services inflation remaining high, though economic activity has slowed significantly.

Next 24 Hours Bias
Weak Bearish

The Canadian Dollar (CAD)

Key news events today

• Boxing Day Holiday (All Day)

What can we expect from CAD today?

Additionally, the Canadian dollar will likely see little activity with Canadian banks closed. The Bank of Canada has reduced interest rates multiple times this year, responding to weaker-than-expected growth and inflation in line with target levels.

Next 24 Hours Bias
Weak Bullish

Oil

Key news events today

• API Crude Oil Stock (9:30 pm GMT)

What can we expect from Oil today?

Crude oil prices have increased, with WTI oil climbing to $70.43 before Christmas. A surprise drawdown in US crude inventories may continue to support prices. If API stockpiles report another larger-than-expected decline, it could push oil prices further up in the coming session.

Next 24 Hours Bias
Weak Bullish

Also, stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.