Early trading this week, which will be the end of December and also the year 2024, is expected to continue to show the slow market movement pattern like last week.
Market analysts warned investors about the risk of volatility in addition to being prepared for a profit-taking situation on the US dollar.
This is likely to lead to volatile price movements and will also affect other major currencies.
However, resuming trading in January 2025, the US dollar is expected to return to its true pattern, which is to resume its strengthening based on the signal from the last FOMC meeting of 2024.
Federal Reserve (Fed) Chairman Jerome Powell has stated that central banks will begin to be cautious with their interest rate cuts from now on.
The signal to slow down the policy easing has pushed the US dollar to strengthen even though interest rates were lowered by 25 basis points at the December meeting.
Investors will remain cautious at the start of the new year trading following the transition of administration in the United States (US) which will be led again by former President, Donald Trump.
Investors are extra cautious as they see the fall in major “Magnificent 7” stocks last week such as Tesla, Amazon, Microsoft and Nvidia which led to a decline in major indices.
The economic calendar is also seen not to display much major data this week and banks are closed for operations on Wednesday in conjunction with the celebration of the new year 2025.
