Cryptos and stimulus chatter set to domimate the week ahead
During the upcoming trading week, the market's attention is likely to turn to the cryptocurrency market, as traders and investors in most western economies will be observing Christmas and New Years Holidays. Bitcoin could be set for a lively finish to the end of 2020 as institutional money continues to pile into the top cryptocurrency. News surrounding the latest United States stimulus bill and a key Brexit vote will also be closely watched by traders this week.
Chinese Manufacturing and non-Manufacturing PMI data headline the economic docket this week. United States weekly jobs figures and oil investory numbers are also set to be released.
Monday 28th December, Dallas FED Manufacturing Survey
The Texas Manufacturing Outlook Survey is a monthly survey, where The Dallas Federal Reserve asks firms about output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month. Based on the responses received, an index is calculated for each indicator. The indexes are calculated subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase.
- The USDJPY pair is only bullish while trading above the 104.50 level, further upside towards the 105.30 and 107.00 resistance levels seems possible.
- If the USDJPY pair trades below the 104.50 level, sellers are likely to test towards the 103.20 and 102.50 support levels.
Tuesday 29th December, API Weekly Crude Oil Stock
API’s Weekly Statistical Bulletin reports the total U.S. and regional data relating to refinery operations and the production of four major petroleum products. These products include motor gasoline, kerosene jet fuel, distillate (by sulfur content), and residual fuel oil. Traders and investors pay attention to the reports as these products represent more than 85 percent of the total petroleum industry.
- The USDCAD pair is only bearish while trading below the 1.2770 level, key support is found at the 1.2600 and 1.2500 levels.
- If the USDCAD pair moves above the 1.2770 level, buyers may test towards the 1.2880 and 1.3100 levels.
Wednesday 30th December, German Retail Sales
German Retail Sales is a measure of changes in sales of the retail sector inside the German economy and shows the performance of the German retail sector in the short term. Percent changes reflect the rate of changes of such sales. The changes are widely followed as an indicator of consumer spending. Positive economic growth is seen bullish for the euro economy, while a low reading is seen as negative, or bearish, for the euro currency.
- The USDCHF pair is only bearish while trading below the 0.9000 level, further downside towards the 0.9830 and 0.9700 support levels seems possible.
- If the USDCHF pair trades above the 0.9000 level, buyers are likely to test towards the 0.9100 and 0.9280 resistance levels.
Thursday 31st December, US Continuing Jobless Claims
US Continuing Jobless Claims is released by the United States Department of Labor measure the number of individuals who are unemployed and are currently receiving unemployment benefits. It presents the strength in the labour market. A rise in this indicator has negative implications for consumer spending which discourage economic growth. Traders are likely to pay attention to this release, following last weeks a large increase in jobless claims.
- The GBPUSD pair is only bullish while trading above the 1.3300 level, key resistance is found at the 1.3650 and 1.3800 levels.
- If the GBPUSD pair trades below the 1.3300 level, sellers may test towards the 1.3200 and 1.3120 levels.
Friday 1st January New Years Day
Bank’s and most financial market will be closed on New Years Day across the globe, as nations celebrate the first day of 2021.