Santa eventually arrives on Wall Street
22 December 2022
Wednesday was an absolutely awesome session for the stock traders as major indices confirmed the reversal initiated on Tuesday. Indices rose significantly, respecting candlestick trend reversal patterns that emerged on the charts two days ago. Main American indices climbed around 1.5% higher, creating a very handsome bullish candle on the chart. Is that a beginning of a long-anticipated Santa Rally?
The calendar yesterday was not busy. We got the inflation data from Canada, which contradicted the most recent trend, and surprised with the number larger than expected. The Canadian Dollar was not bothered too much. It ended a day with gains but there were higher than those on the AUD, EUR, or USD. The data that caught our eye was definitely the CB Consumer Confidence, which happened to be much better than expected (108.3 vs 101). What is more, we got a bullish revision of the number from the previous month, which finally reached 101.4.
Thursday's calendar is way less busy than the one from yesterday. The only number worth mentioning will be the GDP from the US but this one is the final reading, which isnot usually extremely influential. A 2.9% rise is expected, which would be the same as the number reported previously.
Thursday on the forex market brings us significant strengthening of the Australian Dollar, which does not really have any cover in the fundamental side of the market. GBP and NZD are also on the green side of the market. The worst currency among majors is the American Dollar.
Commodities are rather bullish. Wednesday was great for the Oil. Brent and WTI climbed more than 2.7% higher. Noticeably, grains and crops are climbing higher which is sparked by the possibility of another polar vortex opening in the United States, which can threaten a big chunk of the agricultural sector.
Thursday should be rather a quiet day, with no major changes on the chart, maybe apart from the indices, which still should witness some juicy moves till the end of the year.