USD/JPY: The US dollar fell slightly against the Japanese yen on Friday. The markets are closed due to the Christmas holidays in Europe and the USA. Last night, Japan published Retail Trade for October, which came better than market expectations. Large Retailer Sales also rose and showed a positive dynamic during the month. In addition to the Japanese data, the Bank of Japan’s latest Summary of Opinions was also released. Bank of Japan policymakers discussed recent rising inflationary pressures that could force them to change their view the country remained vulnerable to the risk of deflation. The absence of major traders due to the year-end holidays seems to restrict the pair’s moves. The local resistance level can be seen at 114.60. A breakout to the upside can trigger growth to 115.35.
GBP/USD: The Great Britain pound adjusted downwards against the US dollar on Friday, but it is still swaying around a monthly high level due to the holiday-shortened trading session. UK covid infections refresh record top and the British policymakers are pushed to consider experts’ advice for harder activity restrictions. Market participants expect Prime Minister Boris Johnson and his Cabinet to review the latest data and advice from experts today to decide if further restrictions need to be brought in for England. It’s worth noting that neighboring countries such as Wales, Scotland and Northern Ireland have fresh virus lockdown measures starting on Sunday. The local resistance level can be seen at 1.3430. If the pair reaches this level and rebounds from it, it can trigger a further decline towards 1.3340.
Nasdaq100: The US stock market was closed on Friday due to Christmas. Nevertheless, the index over the past week demonstrated solid growth and closed near record levels. The arrival of Omicron has helped to raise market volatility for much of the last month of 2021, which has been a strong year for stocks. Vaccine makers AstraZeneca and Novavax said their shots protected against Omicron. UK data suggested it may cause proportionally fewer hospital cases than the Delta variant. There was a lot of negative market sentiment coming into the final part of the year, and investors have likely continued to see pretty strong economic growth and pretty positive events in the healthcare innovation around COVID. This makes a bet on the stocks market and causes investors to look to allocate capital as they close out the year.