<p>This is a big policy change from China, a major step toward fully reopening travel with the rest of the world.</p><p>Currently, arriving passengers must quarantine for </p><ul><li>five days at a hotel</li><li>then followed by three days at home</li><li>down from a full 3 week quarantine period</li></ul><p>China’s National Health Commission announced on Monday that there would be no more quarantine requirement. </p><ul><li>people arriving in China will still need a negative virus test 48 hours before departure</li><li>passengers will be required to wear protective masks on board</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.

<p style=““ class=“text-align-justify“>I reckon the fact that the dot plots revealed that 17 of 19 Fed policymakers are seeing the Fed funds rate exceeding 5% by the end of next year (with no rate cuts projected) says a lot about how unanimous the thinking is at the central bank right now.</p><p style=““ class=“text-align-justify“>As such, even a rotation in FOMC voters for next year is very unlikely to shake things up – at least for the first half of the year, in all likelihood. But let’s still take a look at the who’s who in terms of voting members for this year and the change in the lineup for next year.</p><p style=““ class=“text-align-justify“>In 2022:</p><p style=““ class=“text-align-justify“>The rotating voters are Susan Collins (Boston), Loretta Mester (Cleveland), James Bullard (St. Louis), and Esther George (Kansas City). For next year:</p><p style=““ class=“text-align-justify“>The lineup of the rotating voters will consist of Patrick Harker (Philadelphia), Austan Goolsbee (Chicago), Lorie Logan (Dallas), and Neel Kashkari (Minneapolis).</p><p style=““ class=“text-align-justify“>Meanwhile, the permanent voters will remain the same in the form of Powell, Brainard, Barr, Cook, Jefferson, Waller, Bowman, and Williams (New York).</p><p style=““ class=“text-align-justify“>As much as I want to try and go off tangent to believe that the rotation will result in a meaningful shift in either a hawkish or dovish (one that most are perhaps saying), I don’t think we’ll see much in terms of dissent or stand out views from the Fed until the inflation outlook changes drastically.</p><p style=““ class=“text-align-justify“>In other words, don’t expect dissents to Powell’s leadership to come about too quickly and that will allow him to manage the Fed and market expectations much more easily for at least the first half of 2023.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>The holiday mood will continue after the Christmas break but that might not mean a pause in the action for stocks ahead of the new year. I’ve highlighted the technical predicament for the S&P 500 for a while now, ever since before we got to the Fed meeting earlier this month <a target=“_blank“ href=“https://www.forexlive.com/news/it-may-all-rest-on-wall-streets-shoulders-when-all-is-said-and-done-20221214/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>And that story is continuing to play out for now, with the double-top pattern near 4,100 and key trendline resistance (white line) for the year providing a strong set of technical consideration for sellers to take charge. That resulted in a break back below the 100-day moving average (red line) before the selloff was only halted by the 50.0 Fib retracement level of the recent swing move higher, seen at 3,796.</p><p style=““ class=“text-align-justify“>That is a key level to watch over the coming days, despite the fact that we are likely to observe thinner market conditions. Below that will be the measured target of the double-top pattern, seen at roughly 3,760, and then the November low at 3,698.</p><p style=““ class=“text-align-justify“>There might not have been a Santa Claus rally this year for stocks but I reckon investors are probably happy enough to not have been dealt another severe blow on the charts before Christmas.</p><p style=““ class=“text-align-justify“>But as we approach the turn of the year, things could get ugly if we do see a break of the key levels highlighted above.</p>

This article was written by Justin Low at www.forexlive.com.

<p>ICYMI,<a target=“_blank“ href=“https://www.forexlive.com/news/a-barrage-of-asian-market-holidays-incoming-next-week-fx-guide-20221223/“ target=“_blank“ rel=“follow“> I posted last week on the holidays in major FX centres in Asia this week</a>. The whole week is going to be more or less a holiday, but Monday and Tuesday will be officially closed in many centres:</p><p>Japan and China are officially open on Monday. BOJ Gov Kuroda is speaking:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/bank-of-japan-governor-kuroda-to-speak-monday-morning-japan-time-sunday-evening-us-time-20221225/“ target=“_blank“ rel=“follow“ data-article-link=“true“>Bank of Japan Governor Kuroda to speak Monday morning Japan time (Sunday evening US time)</a></li></ul><p>Once again, market liquidity will be very thin. If you are trading, take extra care.</p><p>I won’t be around today or tomorrow but will pop in from time to time. For Kuroda’s speech, for example (although afterwards rather than live coverage). Have a great break if you are taking one. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.

<p>Most major forex centres are closed for a holiday Monday (26 December 2022).</p><p>I posted who is open and who is closed here:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/a-barrage-of-asian-market-holidays-incoming-next-week-fx-guide-20221223/“ target=“_blank“ rel=“follow“ data-article-link=“true“>A barrage of Asian market holidays incoming next week – FX guide</a></li></ul><p>Japan is open Monday, 26 December 2022, and BOJ Gov. Kuroda is speaking:</p><ul><li>scheduled for 0350 GMT on 26 December 2022 (this is 2250pm NY time on 25 December)</li><li>Kuroda is addressing a meeting of Councillors of Keidanren (Japan Business Federation) in Tokyo. Keidanren is a significant organisation in Japan with close links to Japan’s ruling Liberal-Democratic Party. It provides advice to the government on economic issues. </li></ul><p>Last week the BOJ widened its tolerance band for JGB yields, sending a shockwave through global markets:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-boj-pivot-sends-the-yen-rocketing-higher-across-board-20221220/“ rel=“follow“ target=“_self“ class=“article-link vertical-align-baseline“>ForexLive Asia-Pacific FX news wrap: BOJ pivot sends the yen rocketing higher across board</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-european-fx-news-wrap-yen-flying-high-after-boj-policy-tweak-20221220/“ rel=“follow“ target=“_self“ class=“article-link“>ForexLive European FX news wrap: Yen flying high after BOJ policy tweak</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-yen-hits-new-highs-as-the-boj-fallout-continues-20221220/“ rel=“follow“ target=“_self“ class=“article-link“>Forexlive Americas FX news wrap: Yen hits new highs as the BOJ fallout continues</a></li></ul><p>USD/JPY plunged on the announcement and the swings continued:</p><p class=“western“ align=“left“>
(This
chart is from our charting app, which is free and <a target=“_blank“ href=“https://www.forexlive.com/LiveCharts“>can
be found at this link</a>)</p>

This article was written by Eamonn Sheridan at www.forexlive.com.

<p>Kuroda filled the Christmas stockings of anyone long yen last week. If you missed that, we hope that Santa Claus brings you something special.</p><p>Trading on Monday will be extremely thin and it will be choppy all next week as the year winds down. Have a look at the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“ target=“_blank“ rel=“follow“>economic calendar</a> to see what’s coming up.</p><p>Merry Christmas from all of us!</p>

This article was written by Adam Button at www.forexlive.com.

<ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-stocks-close-near-the-highs-for-the-day-20221223/“>US stocks close near the highs for the day</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/wti-crude-oil-settles-at-7956-20221223/“>WTI crude oil settles at $79.56</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-house-passes-17-trillion-spending-bill-20221223/“>US House passes $1.7 trillion spending bill</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/atlanta-fed-q4-gdpnow-tracker-rises-to-37-from-27-20221223/“>Atlanta Fed Q4 GDPNow tracker rises to +3.7% from +2.7%</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/dallas-fed-trimmed-mean-pce-price-index-34-vs-39-prior-20221223/“>Dallas Fed trimmed mean PCE price index +3.4% vs +3.9% prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/major-european-indices-close-the-day-with-mixed-results-20221223/“>Major European indices close the day with mixed results</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/canada-october-federal-budget-deficit-c190b-vs-c368b-in-oct-2021-20221223/“>Canada October Federal budget deficit C$1.90B vs -C$3.68B in Oct 2021</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/what-are-the-2022-holiday-trading-hours-in-bond-and-stock-markets-20221223/“>What are the 2022 holiday trading hours in bond and stock markets</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-november-new-home-sales-640k-vs-600k-expected-20221223/“>US November new home sales 640K vs 600K expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/michigan-consumer-sentiment-final-for-december-597-versus-591-preliminary-20221223/“>Michigan consumer sentiment final for December 59.7 versus 59.1 preliminary</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-november-pce-core-inflation-47-vs-47-expected-20221223/“>US November PCE core inflation +4.7% vs +4.7% expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-durable-goods-for-november-21-versus-06-expected-20221223/“>US durable goods for November -2.1% versus -0.6% expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/canadian-october-monthly-gdp-01-vs-01-expected-20221223/“>Canadian October monthly GDP +0.1% vs +0.1% expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/technical-analysis/the-nzd-is-the-strongest-and-the-jpy-is-the-weakest-as-the-na-session-begins-20221223/“>The NZD is the strongest and the JPY is the weakest as the NA session begins</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-european-fx-news-wrap-dollar-mildly-lower-xmas-awaits-20221223/“>ForexLive European FX news wrap: Dollar mildly lower, Xmas awaits</a></li></ul><p>There was a flurry of data today before markets settled into the holiday week ahead that will have Stock and bond markets closed on Monday in observance of Boxing Day and Christmas and early closes next Friday and on Monday for New Years. The forex market will be open Monday to Friday as is customary, but with the economic schedule light and most traders taking the week off, the activity should be limited. </p><p>For year end flows (tax related), activity must be completed by Wednesday to get under the end of year wire. </p><p>Today the US had durable goods, Core PCE including personal consumption, Michigan consumer confidence and new-home sales.</p><p>Durable goods orders came out mixed. The headline number was weaker than expectations but if you subtracted out the transportation, it wasn’t so bad. Revisions were not so great though.</p><p>PCE headline and core inflation came in about as expected with the core PCE still up 4.7% but down from 5.0% last month. Included in that report is personal income which rose by a greater than expected 0.4% versus 0.3%. But consumption was worse than expected at 0.1% versus 0.2%.. Later in the morning, the Univ. of Michigan final reading came in at 59.7 up from 59.4 the preliminary. Both were higher than last month’s 56.8 reading. The current conditions rose to 59.4 from 58.8 last month. The expectations Index was also higher 59.9 versus 55.6. Inflation one year forward came in at 4.4% versus 4.9% last month. Although lower, it is still above the Federal Reserve’s estimate of 3.1% at the end of 2023.</p><p>In the forex market, the strongest of the majors was the NZD and the AUD. The weakest were the JPY and CHF. THe USD was also weaker today vs most of the major currencies. </p><p>In other markets:</p><ul><li>spot gold is up $5.88 or 0.32% at $1798.04</li><li>spot silver rose to $0.16 or 0.69% at $23.72</li><li>WTI crude oil closed higher by $1.90 at $79.41</li><li>bitcoin was steady and $16,814. It was near mid range of the day’s trading range</li></ul><p>In the US stock market, the major indices worked their way from negative territory to positive terrritory by the close:</p><ul><li>Dow rose 0.53%</li><li>S&P rose 0.59%</li><li>Nasdaq rose 0.21%</li><li>Russell 2000 rose 0.39%</li></ul><p>Let me take this opportunity to wish you all a happy and healthy holiday season. </p><p>Joy to the world….</p>

This article was written by Greg Michalowski at www.forexlive.com.

<p>With the day moving toward a close, the stocks are moving off their high levels. The NASDAQ index is now negative on the day. US yields remain higher and near their highest levels. The two year yield is up 6.3 bps at 4.327%. The 10 year yield is at 3.751%, up 8 bps on the day.</p><p>The major stock indices are trading within the low to high ranges from yesterday as traders look toward the holiday weekend. The markets will be closed on Monday in observance of Boxing Day/Christmas (one day later). </p><p>Gold is up $3.34 or 0.19% on the day. </p><p>Bitcoin is steady at $16818 (it as near $16840 at the start of the day). </p>

This article was written by Greg Michalowski at www.forexlive.com.

<p>The major US indices are closing the day higher and near highs for the day. </p><p>At session lows the </p><ul><li>Dow Industrial Average was down -213 points</li><li>S&P index was down -25.37 points</li><li>NASDAQ index was down -114.30 points</li></ul><p>The final numbers for the day are showing:</p><ul><li>Dow industrial average rose 176.42 points or 0.53% at 33203.92</li><li>S&P index rose 22.43 points or 0.59% at 3844.81</li><li>NASDAQ index rose 21.75 points or 0.21% at 10497.87</li><li>Russell 2000 rose 6.845 points or 0.39% at 1760.93</li></ul><p>For the trading week:</p><ul><li>Dow Industrial Average rose 0.86%</li><li>S&P index fell -0.20%</li><li>NASDAQ index fell -2.45%</li><li>Russell 2000 fell -0.14%</li></ul><p>With one week left of trading, the numbers for 2022 are showing:</p><ul><li>Dow Industrial Average down -8.63%</li><li>S&P index down -19.33%</li><li>NASDAQ index down -32.90%</li><li>Russell 2000 down -21.57%</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.

<p>The price of WTI crude futures are settling at $79.56 . That’s up $2.07 or 2.671%</p><p>Frigid temperatures across most of US are contributing to the move to the upside. The high price today extended back over the $80 level to $80.30. The low price was down at 78.01.</p><p>Looking at the hourly chart, the price moved back above the 38.2% retracement of the move down from the November 7 high. That level comes in at $79.16. </p><p>The rising 100 hour moving average is down at $77.4, and the rising 200 are moving averages at $76.52. Earlier this week, the price tested that 200 hour moving average and found successive buyers against the level. That gave the buyers the go-ahead to push the price to the upside from a technical perspective.</p>

This article was written by Greg Michalowski at www.forexlive.com.