December is a time of year for thin liquidity and position squaring, as markets slow down ahead of the holidays, affecting trading behavior.
The dollar's recent rebound is likely due to ongoing bullish trends rather than political rhetoric, emphasizing the strength of 'US exceptionalism'.
As December progresses, market participants may find themselves looking for narratives to explain price actions, complicating interpretations of market movements.
The start of a new month typically sees the dollar performing well, a trend that has held true over the past 18 months.
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