Eyes on the US Consumer Confidence Amid Thin Trading

In the final week of this year markets are still in the holiday mood, where trading remains quiet with thin volumes as investors continue to be cautious ahead of the year-end.

investors await the release of the US consumer confidence, looking for more signs of recovery in the world’s biggest economy, amid continued concerns over the euro-zone’s debt crisis.

The recent upbeat US data spurred rallies in riskier assets, yet as uncertainties regarding the global economic outlook remain high, risk aversion might be triggered anytime, and trading may become volatile due to the low volume.

Several markets remain closed today for an extended Christmas holiday, including New Zealand, Australia, Hong Kong and UK. In Europe however markets will be quite on lack of economic data and bond auctions.

Yet the European stocks rose today unlike their Asian counterparts, as markets focus on the US consumer confidence which could show improvement in during Dec. while the house prices may fall but at a slower pace.

DAX gained 0.77% while CAC 40 gained 0.92%. The euro is also moving with a slight bullish momentum yet in a tight range around the 1.3070, while the pound is following the euro’s footsteps trading around the 1.5640.

As risk appetite improved yet volume is thin the USD is moving in a tight range but with a slight downside momentum around the 79.80 level. The yen is strengthening trading around the 77.85 level.

The AUD is slightly weaker trading around the 1.0155 level as commodities are loosing momentum ahead of the year-end, where oil is trading around the $99.60 level while gold is trading around the $1599.75 level.