Labor Market Insights, BoJ’s Policy Stance, & Forex Buzz

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Weekly Market Recap December 31  - January 6, 2024 Click here to register yourself for a real-time review that can help you turbocharge your trading game. You will gain access to simple yet highly effective techniques used by our experts.   See the workshop schedule >> Hi, We trust you enjoyed a wonderful holiday season. As we ease into the last week of the year, let’s take stock of the shortened trading week that unfolded. Trading volumes remained thin this week, reflecting the subdued market activity.  Amidst the post-holiday tranquility, one key trend that caught attention is the unprecedented flow into Money Market Funds (MMFs).  With a staggering +$5 trillion parked in MMFs and an influx of $1.35 trillion this year alone, the question arises: Will these funds pivot towards equities, especially in an election year, and as the Fed normalizes its policy? The dynamics of this significant fund rotation will be intriguing to watch in the coming months. Click Here to know how our top analysts are looking to trade key economic trends like these in 2024. Here's a scoop of other market movers from the week: 1. US Labor Market Resilience: Initial applications for US unemployment benefits increased modestly in the week leading up to Christmas, standing at 218,000. This figure, though subject to holiday-related volatility, reflects a labor market that remains resilient.  2. US Housing Market: Pending home sales in the US remained unchanged in November, following a 1.2% dip in October. This reading fell short of market expectations for an increase of 1%, signaling a pause in the housing market.  Curious to know how our pro traders are trading this data on their charts? - Click Here for our analysts' take. 3. BOJ's Inflation: Bank of Japan Governor Kazuo Ueda expressed optimism noting that the likelihood of achieving the BOJ's inflation target is "gradually rising." The central bank is open to adjusting its policy stance if the prospects of hitting the 2% inflation target sees a significant uptick. 4. Japan’s Economic Data: Japan’s preliminary industrial production for November revealed a month-on-month (MoM) decrease of 0.9%, surpassing expectations of a 1.6% decline. On a year-on-year (YoY) basis, the decrease was 1.4%.  So, that was a wrap.  For more market strategies, check out this exclusive trading masterclass >> To your success, Tad DeVan Senior Currency Strategist Market Traders Institute These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation or warranty is being made that any account will or is likely to achieve profits or losses similar to these being shown. Copyright © 2023 Market Traders Institute 2301 Lucien Way Maitland, FL, 32751 International: 407.585.2417 USA & Canada: 866.787.8558 Click here to Manage Your Email Preferences All trading carries significant risk. Please see our full risk disclaimer.