What Happened
- Year-end FX fixing flows caused brief spikes in major pairs.
- Equities finished flat as desks closed books and avoided new risk.
- Funding markets were calm, with front-end rates little changed.
- Oil slipped on de-risking into year-end.
What It Means
- Fixing volatility is mechanical and rarely a lasting signal.
- Calm funding conditions reduce the chance of an abrupt January shock.
- Thin liquidity still leaves markets vulnerable to gaps next week.
What I Think
- I expect the real move to emerge in the first week of January.
- If the dollar stays heavy, rotation into commodities continues.
- I prefer to keep powder dry for the reopening week.
Market Terms
- FX fixing - A daily benchmark rate used for index and corporate flows.
- De-risking - Reducing exposure to lock in gains or limit drawdowns.
- Funding calm - Stable short-term rates and easy access to liquidity.