Wall Street wrapped up another week on a positive note, sustaining its upward trajectory as major indices marked a fourth consecutive week of gains. The Dow Jones Industrial Average continued its climb, ending Friday with a modest yet noteworthy increase, while the S&P 500 edged slightly higher, underscoring the resilience of the market within a complex global economic landscape. Notably, the Nasdaq Composite experienced a slight dip, reflecting the nuanced interplay of market forces as investors navigate through the holiday season. This sustained momentum comes against the backdrop of mixed global indicators, with European markets closing higher and Asia-Pacific markets showing a varied performance.

As Treasury yields hit multi-month lows, the market sentiment seems to be leaning towards a cooling inflationary environment and a potential pause in the Federal Reserve’s rate-hiking regimen. However, this optimism is tempered with caution as investors closely monitor the global economic slowdown, particularly focusing on the dynamics in major economies like the European Union, the UK, and China. 

Key Takeaways:

  • Continued Uptrend in Major Indices: The Dow Jones Industrial Average ended the week with a gain, rising 117.12 points or 0.33% to 35,390.15, while the S&P 500 inched up by 0.06%, closing at 4,559.34. The Nasdaq Composite, however, experienced a slight decline, closing down 0.11%.
  • Retail Shares Show Mixed Performance: Major retail stocks displayed a mixed trend as Black Friday commenced the holiday shopping season. Walmart and Target saw modest rises of 0.9% and 0.74%, respectively, while Amazon showed a marginal increase of 0.02%.
  • Global Market Dynamics: European markets closed mostly higher, reaching a nine-week high, while Asia-Pacific markets traded mixed. The UK’s FTSE 100 logged a weekly fall despite gains in energy stocks.
  • Treasury Yields and Economic Forecasts: Treasury yields hit multi-month lows, with the 10-year yield rising 6 basis points to around 4.476% on Friday. Economic forecasts for 2024 suggest a global slowdown, yet a likely avoidance of recession.
  • Individual Stock Movements: Nvidia’s shares fell 1.7% amid reports of a delay in their AI chip launch in China. Electric vehicle start-up Fisker rose by 5%, while solar stocks like First Solar and SolarEdge saw declines.
  • Sector Performance and Trading Patterns: The Technology and Consumer Discretionary sectors led declines in Canada, with the Toronto Stock Exchange’s S&P/TSX composite index falling slightly. In the U.S., healthcare stocks led gains in the S&P 500, while communication services and tech sectors lagged.

FX Today:

  • EUR/USD Approaching Key Levels Amongst Dollar Weakness: The Euro continued to strengthen against the US Dollar, approaching the 1.0900 mark. This movement reflects the Dollar’s weakness following recent economic data. The EUR/USD pair is closely watched for potential resistance near 1.0900 and support around 1.0650.
  • GBP/USD Rises to September Highs: The British Pound has surged against the US Dollar, reaching levels last seen in September. Currently, GBP/USD is trading comfortably above 1.2500, supported by positive economic indicators from the UK. The pair’s support is seen at the 200-day SMA at 1.2437, with resistance around 1.2500.
  • EUR/GBP – Sterling Strengthens Against Euro: EUR/GBP has seen the British Pound gain strength, with the pair currently trading around 0.8675, a noticeable decline from the week’s high. The upcoming week’s economic data releases could influence the pair further, with a close watch on levels around 0.8700 for potential support or resistance.
  • Gold’s Steady Ascent: Gold prices, exhibiting a positive trend, are approaching a critical resistance level at the $2,000 mark. The metal’s trajectory has been bolstered by a weakening US Dollar and is closely watched for sustained acceptance above this level.
  • Silver Breaks Resistance: Silver has shown a robust performance, breaking above a descending trendline. Now, it faces resistance at $24.32. If it successfully breaches this level, the next target could be around $24.97. On the flip side, support levels are identified at $23.80, offering a potential fallback in case of retracements.

Strike Options:

  • EUR/USD Option Strikes: In the upcoming week, several significant EUR/USD option strikes are set to expire, potentially influencing the currency pair’s movement. On Monday, notable strikes are at 1.0845-50 with 2.6 billion euros and 1.0950 with 1 billion euros. Tuesday features strikes between 1.0835-55 (2.3 billion euros), followed by Wednesday with strikes at 1.0900 (1.5 billion euros) and 1.0970-75 (1 billion euros). Thursday sees strikes at 1.0800-05 (1 billion euros) and 1.0855 (1.1 billion euros).
  • USD/CHF Key Expiries: The USD/CHF pair will also see significant strike expiries. On Tuesday, a major strike is set at 0.8915 (644 million), with another on Thursday at 0.9000 (600 million). Friday’s expiries include strikes at 0.8765 (800 million) and 0.8850 (750 million).
  • GBP/USD and EUR/GBP Expiries: For the GBP/USD pair, notable expiries are limited next week, with Wednesday featuring a strike at 1.2300 (770 million pounds) and Thursday at 1.2400 (611 million pounds). In the EUR/GBP pair, significant strikes include Monday at 0.8700 (528 million euros), Tuesday at 0.8700-10 (800 million euros), and Thursday at 0.8700 (636 million euros).


Wall Street’s week of gains highlights a global financial market at a critical point, balancing mixed performances among key indices. This reflects a market navigating diverse economic signals and shifting policy landscapes. The U.S. shows cautious optimism, echoed in Europe’s gains and Asia-Pacific’s varied results. 

The upcoming week sharpens focus on key economic data and central bank decisions, crucial for shaping interest rate directions and economic health. The FX market, especially with significant option strike expiries in major pairs like EUR/USD, GBP/USD, and USD/CHF, will be under scrutiny for its potential influence on short-term market dynamics.

This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. INFINOX is not authorised to provide investment advice. No opinion given in the material constitutes a recommendation by INFINOX or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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