Forex Today 16/12: Risk-Off Mood Grips Market

2025-12-17 04:14:59

(MENAFN- Daily Forex) A counter-trend risk off mood has taken hold in the market, sinking stocks and other risky assets.

Risky assets are sinking as a sourer mood takes hold in the market.

Precious metals are lower (except Palladium) and well off yesterday's highs, when this asset class was looking very bullish. Gold was trading well below $4,300 towards the London open.

Stock markets are lower, with the S&P 500 Index notably trading below 6,800.

Bitcoin has broken below a former key support level below $88,000, but may be finding support at about $85,000.

The US Dollar is approaching a 2-month low.

Commodities are mostly lower, with WTI Crude Oil approaching a 7-month low.

The Japanese Yen is strengthening, which is typical in a bearish market environment.

In the Forex market, action has been dull since the Tokyo open today. The USD/MXN currency pair is testing very long-term lows, having reached a new 17-month low just now. Many Forex brokers pay positive swap on short positions, which could make this an attractive carry trade.

There will be a release of Canadian CPI (inflation) data today, which is widely expected to show a small month-on-month increase of 0.1%.

I doubt there are any good trades in the market today, but tomorrow will see the first release of US Non-Farm Payrolls data in several months, and this could bring directional changes in the market and add volatility too Forex Brokers1 Get Started 74% of retail CFD accounts lose money

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