Slow Start to a Slow Week

It is likely to be a slow couple of weeks till the end of the year as the holiday season begins and the traders leave their desks to enjoy at the beaches and some sunshine. Trading is a difficult but highly rewarding job if done the right way and it is important for the traders to take time off and relax while they can and what better time to do that than the end of the year when a large part of the world is in a holiday mood and the markets tend to be slow and dull. It is of no use to fight the markets in such a situation and better to make use of this time to relax and recharge the batteries and prepare for the next year.

With the Fed announcing a rate hike and further hikes in 2017, it is going to be an interesting year ahead. We believe that the dollar would continue to gain in strength in the coming months and any period of correction in the dollar should be viewed as an opportunity to go long on the dollar. The yen and the euro are likely to be most vulnerable against the dollar along with the pound, which has its own set of issues to deal with surrounding the Brexit process.

It has been a slow morning so far with a bit of correction in the dollar strength that was seen last week. Nothing alarming so far but it is going to be keenly watched. We did have the Australian budget outlook and it was more on expected lines with the budget assuming lower oil and coal prices for the coming year and it was generally consistent with the AAA rating that It had. For today, we have the German Ifo Business Climate during the London session which is likely to bring in a bit of volatility.

 
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