FXstreet.com (London) - Investors this week have been covering shorts and closing down losing positions ahead of the New Year. A short position is one which you have sold the asset, and look to profit by buying back the asset at a later date, for a lower price than you sold it.
Thin markets and low volumes make balancing books difficult for market players and liquidity providers, and as such wide spreads and enhanced swings in prices can often result.
This has been the case in recent market activity, with both the aforementioned phenomenon pushing global markets upwards.
Asia is closed today, but US markets closed up for second consecutive session this week, Dow up 0.5%, NASDAQ breaking 15 month highs for the second time this week closing up 0.67% at 2252.67, and the S+P also gained around 0.36%.