The gains on share markets continue over the Christmas period, leading to hopes of another ‘Santa Claus Rally’. US Q3 GDP was much stronger than expected, surging to 4.3% growth, half a percent higher than Q2. Expectations are high for further rate cuts from the Fed, as data has been sluggish, but the replacement for Fed Chair Powell will be a Trump appointee. Trump has advocated slashing interest rates and turbo charging the economy. The US Dollar continues to drift lower, with the EUR breaking above 1.1750, while the GBP trades 1.3450.The softer reserve allowed for further gains in commodity currencies, with the AUD looking to regain 0.6700, while the NZD consolidates above 0.5800. The RBA released the minutes of their last meeting and this confirmed inflation was a problem, once again in 2026, and monetary policy would reflect this. Positive markets are expected into the holiday season. Merry Christmas.
