Nothing can stop the Cut – North American session Market Wrap for December 5

Log in to today's North American session Market wrap for December 5

Markets are closing a high-expectations week and heading into an even-more volatile one.

Coming back from the Thanksgiving break, traders confirmed the past week's spectacular rally with normal volumes returning to Stock Markets.

While the week wasn't as unidirectional as last week, the overall mood is still highly positive as both the Dow Jones and S&P 500 stall just shy of their all-time highs.

There has been several chaotic waves of action today: an initial rally in risk-assets was consequently followed by a strong selloff in Cryptos, which dragged Equities off of their relative highs.

The reason for the selloff isn't a particular single catalyst, but looking at this week's narrative, MicroStrategy's ongoing liquidation dynamics—fueled by a massive stock crash and the possibility of selling Bitcoin to meet liquidity and dividend obligations—could still be into play.

In terms of politics, the world assisted to the 2026 World Cup Draw in Washington this afternoon.

While most were focused on the football calendar, traders were watching closely how US President Trump interacted with Canadian PM Mark Carney and Mexican President Sheinbaum.

And some positive words from Trump regarding their relations have brought further strength in an ongoing Canadian Dollar rally – Canada posted yet another beat on their Employment data!

Metals close a very positive week in a mixed fashion, with all of the tradable elements making a sharp move higher at the beginning of the week before settling down today.

The commodity class which has surprised markets this week, and once again today, has been Energy products. WTI Crude Oil is back above the $60 mark, and Natural Gas is on a huge breakout, trading above $5/MMBtu and soaring over 70% since mid-October lows. This strength is driven by a cold front forecast and geopolitical supply risks.

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Market performance stayed relatively muted today, with rangebound and undecided action across all assets – Well, except for Bitcoin which took a huge hit.

Keep an eye on energy commodities, as there seems to be a theme developing there and could be the most interesting asset class ahead of the FOMC.

All other classes should stay put in the waiting for Powell's words on Wednesday.

The Aussie was rallying quite aggressively during the overnight session with Markets starting to price out all types of cuts in 2026 after their huge inflation numbers, strong trade data and retail sales activity as of late – Their rate decision is happening on Monday evening, so traders are already preparing for some hawkish speeches.

But the Canadian Dollar came to steal the show. As mentioned in the intro , another beat in Canadian Employment gave a huge boost to the currency, now reaching some monthly highs against most of its counterparts.

The Sunday session will provide GDP Data for Japan, very important for the Yen – The Japanese economy is expected to contract further (-2% Annualized), which could severely complicate the Bank of Japan's hiking path.

A rate hike has been drawing when looking at the BoJ's recent communications, but the tightening has been put to test with the recent Household spending data sharply missing.

I invite you to have a look at our JPY/Japan fundamental analysis right here!

Later on Sunday, China's Trade Balance will shed some light on the state of global demand, with exports expected to rebound.

To start the week, the Early Monday session shall see the release of German Industrial Production at 2:00 A.M., looking to recover from the previous -1% slump.

But the real show will start late in the evening with the RBA Interest Rate Decision at 22:30 ET – Keep a note on this one as it is the main event of the day.

While a Hold at 3.6% is widely expected, the Rate Statement will be in the center of attention. The past communications have been hawkish, and traders are getting ready for more when looking at the daily rebound in the AUD.

Don't forget the several BoE speakers (Taylor, Lombardelli) scheduled throughout the day – However, don't expect too much fireworks from the US session as the calendar remains light.

Safe Trades!

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