Surprisingly large FX moves to start the week as the mood brightens

Never trust a market move between Christmas and New Years.

The market was sure in a good mood though as the S&P 500 roared 65 points higher, or 1.4%, to a record 4791.

It was a similar tone in FX with the yen lagging. The pound led the way by a fair margin, which is a bit concerning on the ‘risk trade’ front with the kiwi not making much headway. Again, I wouldn’t read too much into any market move.

I will say that the public tide is now firmly against further lockdowns everywhere and more than the evident mildness of omicron, that’s what markets are picking up on.

Here are the end-of-day levels and changes:

FX levels

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