Forex Top Team

Year-End Market with Limited Catalysts – Anticipation for the Launch of the New NISA

Today marks the return of the London market after the Christmas holiday break, bringing major global markets back into play. However, the weekend is approaching, with a three-day New Year’s holiday on the horizon. In Tokyo, there are even more holidays to follow, making it unlikely for a full-fledged market launch at this time.

Amidst this, the eagerly awaited New NISA (Nippon Individual Savings Account) is set to begin next year. Reports suggest a strong trend in the opening of new accounts, especially among online securities, indicating that a considerable amount of funds may start flowing. With a psychological boost in the backdrop, there is an expectation that individual investors will engage in fund purchases, particularly targeted towards the end of the year. Given the anticipated interest of individual investors in foreign currency trading, there is a possibility of selling pressure on the yen in the thinly traded foreign exchange market. However, liquidity remains insufficient, making it unsuitable for large transactions.

The economic indicators scheduled to be released in the overseas markets thereafter are limited to less prominent ones, such as the US Richmond Fed Manufacturing Index for December. There are hardly any significant events expected during the London European hours. In terms of events, there is a planned $580 billion US 5-year bond auction. In the absence of substantial catalysts, the market is likely to be driven by speculation, alongside movements in stocks and bonds.

Continuing on, significant currency movements are not anticipated, so the focus remains on cryptocurrencies. The current position is long on SOL/USD (Solana) only.

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