On the currency front, the U.S. dollar has demonstrated renewed strength against most foreign currencies, particularly since the post-election period in the fall of 2024. However, the dollar has seen a decline of about 4% since July against a basket of currencies, including the euro, British pound, and Canadian dollar. This fluctuation reflects the broader economic trends and geopolitical influences affecting currency markets.
In summary, while the stock market and the U.S. dollar have faced some short-term volatility in December 2024, the overall uptrends from the year remain evident. The "Santa Claus rally" and the significant gains in major stock indices highlight the positive trajectory for the stock market, while the U.S. dollar's performance reflects ongoing economic and geopolitical dynamics.
