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Forex Today: Santa Rally Sends US Market to Record High

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Continuing optimism over the impact of the omicron variant boosts the typical late-December Santa rally, pushing US stocks to an all-time high.

  • Stock markets rose strongly in the US and Europe as data continues to suggest the omicron coronavirus variant, while considerably more infectious, has notably milder effects than previous coronavirus strains, with an estimated 30% to 70% reduction in the probability of hospitalization. This is potentially very good news for both health and economy, so stock markets have risen firmly. The S&P 500 Index rose strongly yesterday, ending the session near 4800. The odds are positive that we will see a continuing rise in the S&P 500 Index over the coming days.
  • In the Forex market, we are continuing to see a strong Australian Dollar, and continued weakness in the US Dollar and, especially, in the Japanese Yen. Ranges are relatively small but it seems clear that last week’s dominant risk-on paradigm continues to dominate the market.

  • Markets will be extremely slow until today’s New York open as it is a public holiday in the UK today. It is also a holiday today in Canada.
  • Last week saw the highest number of new confirmed coronavirus cases recorded globally since the start of the pandemic a little over two years ago.
  • It is estimated that 57.4% of the world’s population has received at least one dose of a coronavirus vaccination.
  • France, Germany, and Greece have imposed new coronavirus restrictions as the virus continues to spread very strongly in Europe.
  • Total confirmed new coronavirus cases worldwide stand at over 281.9 million with an average case fatality rate of 1.92%.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Argentina, Australia, the Bahamas, Canada, Cyprus, Ethiopia, Finland, France, Greece, Iceland, Italy, Kenya, Malta, Montenegro, Nigeria, Portugal, Spain, the UAE, and the USA.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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