FOLLOWING A CENTRAL BANK WINDFALL, FINANCIAL MARKETS STABILIZE

What you need know on Monday, December 18 is as follows:

The markets seemed to have stabilized at the start of this week after major central banks last week, which resulted in unusually volatile action. The US Dollar (USD) Index is still near 102.50 after falling more than 1%, and the benchmark 10-year US Treasury note seems to have stabilized at slightly less than 4%. The Bundesbank's Monthly Report and German will be on the European economic agenda. Market participants attentively observing statements made by central bank officials.

Wall Street's major indexes closed neutral on Friday, signaling the end of the risk rally that began with the dovish Federal Reserve surprise late Wednesday. US stock index futures are trading slightly higher so far on Monday, suggesting a slight uptick in the risk appetite.

The US dollar's value during the past week

The US Dollar (USD) percentage against a list of major currencies over the last seven days is displayed in the table below. In relation to the Australian dollar, the US dollar was the weakest.

The heat map shows the percentage fluctuations of the major currencies in relation to each other. The left column, and the quotation currency is chosen from the top row. If you choose the Euro in the left column and go down the horizontal line to the Japanese Yen, the percentage change displayed in the box will be EUR (base)/JPY (quote).

According to data from New Zealand, during Asian trade hours, the Westpac Consumer Confidence Index for the fourth quarter rose from 80.2 to 88.9. Other statistics show that the Business NZ PSI rose from 48.9 in October to 51.2 in November. Positive data releases contributed to the NZD/USD pair's increase in value. At 0.6240, it was by more than 0.5% for the day.

It saw about 1% rise in EUR/USD, despite finishing the week in negative territory. The pair holds its position and trades just above 1.0900 in the European morning. It has been followed by a stabilization of GBP/USD at 1.2700 early on Monday.

For the first time since late July, the USD/JPY fell below 141.00 on Thursday before starting to rise slightly on Friday, on Monday, the pair entered a consolidation period above 142.00. During the Asian session on Tuesday, It will be release by the Bank of Japan.

XAU/USD lost its bullish momentum in the second half after approaching $2,050 very close. This came about as the yields on US Treasury bonds leveled off after a precipitous drop in the Fed. As the new week gets underway, gold is largely quiet and trades at $2,020.