This week (December 29 to January 2) and next week, there are a few important things to pay close attention to.

**First, don't underestimate the liquidity issues during the holiday season**

Christmas and New Year’s Day, although only two official holidays on December 25 and January 1, most financial institutions treat this period as "year-end vacation." From Monday to Wednesday, the market nominally continues to operate, but actual trading volume is extremely thin, and liquidity dries up. Some European exchanges even close early.

Traditional financial firms usually have a period of concentrated holidays, forced account closures, and year-end settlements. Team rotations are also common. Therefore, real liquidity only recovers after January 2— but that’s a Friday. In reality, the market only truly picks up on January 5 (next Monday). Until then, the entire market remains in a high-risk state of "thin liquidity + soaring volatility."

**Second, the Bank of Japan meeting minutes may cause ripples**

On December 29 at 07:50 AM, the Bank of Japan will release the minutes of its December policy meeting. Japan recently raised interest rates; will this meeting’s minutes reignite expectations of further rate hikes in Japan?

Currently, Japan’s rate hikes are progressing on an annual basis, with a relatively restrained pace, so the impact on the market shouldn’t be too intense. But don’t completely ignore it—after all, every move by the central bank can sway market sentiment.

**Third, the Federal Reserve policy minutes are the main event**

On December 31 at 03:00 AM, the Federal Reserve’s December monetary policy minutes will be released. This document will reveal how much disagreement and controversy exist within the Fed, and what their true plans are for future interest rates.

The market is still discussing the tendencies of the new Fed Chair and future voting members. This expectation might reinforce the view that "interest rate cuts won’t happen until Q1 2026," while also boosting expectations that "the new Chair in late 2026 will accelerate rate cuts." Changes in these expectations will directly influence the pricing logic of financial markets.

**In summary**

The main theme of this week is low liquidity combined with holiday effects. Short-term volatility risks are real, and the best approach is to be patient and wait until the market truly picks up.