With just three days to go in 2025, financial markets received their customary “Santa rally” as stock markets finished last week on the front foot.
While there was action elsewhere, things were a little more restful in the land of currency. The pound, the euro and the US dollar all traded within a narrow range of one another on Christmas Eve as volumes dried up in the quiet period.
The shortened week ahead delivers us the Federal Reserve’s minutes from its last meeting. Those relatively dry, procedural notes can often cause sudden swings in value for the US dollar and other currencies pegged to it given the sensitivity of the American economy (and its currency) to interest rates.
The only other real event of note comes once the clocks have ticked into 2026. Nationwide’s monthly house price data on Friday will be closely watched after a string of volatile reports. Experts predict prices increased only marginally in December.
Footfall in UK stores was marginally higher this Christmas Eve compared to last year. Retailers were also cheered by forecasts of a strong boxing day, helped by the usual litany of sales as consumers hit shopping centres and scrolled on their phones.
The United States and Ukraine are reportedly getting closer to a draft agreement that would end the war with Russia. It’s still unclear if Moscow would agree to the proposals, but President Zelenskyy still put in the air miles to fly to meet his American counterpart in Florida this weekend.
But while there was progress in one conflict, the US military announced it had conducted strikes on ISIS targets in Nigeria on Christmas day. Those movements came with intelligence assistance from the Nigerian government following attacks on Christians.
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