The broad-based U.S. dollar is at the back during holiday-diluted trading and will end this week on a bearish path as optimism about coronavirus vaccines and the U.S. stimulus package has prompted investors to put their money into riskier assets rather than safe havens. In addition, losses in the U.S. dollar could be linked to suspicions of a U.S. economic recovery from the COVID-19 pandemic. In addition, the events surrounding the imminent Brexit deal also played a major role in undermining the US dollar.
In the absence of any key data / events next week, market traders will keep an eye on the CPI data series, along with the EIA crude inventory report and U.S. unemployment claims. Meanwhile, risk catalysts, such as geopolitics and the adversity of viruses, not to mention Brexit, will not lose on their importance and could play a key role in determining the level of risk in the market.
The best economic events to watch this week
1) European retail sales (year-on-year) – Monday – 08:00 GMTThese data are published by the Central Bureau of Statistics, which measures changes in the retail sector. Shows the performance of the retail sector in the short term. However, changes are widely monitored as an indicator of consumer consumption. In this way, high figures are considered currencies for the euro currency; conversely, low figures are considered bears for the Euro.Previous edition
REALLY: -2.7%
DEV: 0,01
AGAINST: -2.8%
DATE: 27.11.2020 08:00
2. S & Price Indices for P / Case-Shiller Homes (Year-on-Year) – Tuesday – 14:00 GMT This information is usually published by Standard & Poor. It measures changes in the value of the residential real estate market in 20 areas across America. This report is considered an indicator of the health of the U.S. housing market. High numbers are considered bulls for the USD; conversely, low figures for the USD are considered bearish. Previous edition
REALLY: 6.6%
DEV: 3.15
AGAINST: 5.1%
DATE: 11/24/2020 14:00
3. U.S. Trade Balance of Goods – Wednesday – 1:30 p.m. GMT These data are usually published by the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. Indicates the difference in value between imported and exported goods during a given month. It is also worth mentioning that the number is published monthly, 4 to 7 days before the international trade balance, presenting advanced statistics for the reference month. Since it began in July 2015, the instability could be unstable during the first editions. Higher exports and fewer imports are considered positive or bullish for the U.S. dollar; conversely, lower exports and higher imports are considered negative or bearish for greenback. Previous edition
REALLY: -80.29 USD
DEV: – –
AGAINST: – –
DATE: 25.11.2020. 13:30
4. Change in EIA Crude Oil Stocks – Wednesday – 15:30 GMT This report was published by the Energy Information Administration. It is a weekly measurement of the change in the number of barrels in the stock of crude oil and its derivatives. This report seeks to produce high price volatility, as crude oil prices affect global economies, affecting most commodity-related commodities, such as the Canadian dollar. In addition, this report tends to affect the price of crude oil itself.
DATE: 23.12.2020 15:30
5. Non-productive PMI – Thursday – 01:00 GMT
These data are published by the China Federation of Logistics and Procurement (CFLP), based on a survey of approximately 1,200 companies, covering 27 industries, including transport, construction and telecommunications. This is the level of the diffusion index based on the surveyed procurement managers in the service industry. Figures above 50.0 indicate industrial expansion, which is considered positive or bullish for the CNY currency; conversely, readings below 50.0 indicate a decline in the industry, which is considered negative or bearish for CNY.
Previous edition
REALLY: 56.4
DEV: 0,97
AGAINST: 52.1
DATE: 11/30/2020 01:00
PMI for NBS production:
These data are usually published by the Chinese Federation of Logistics and Procurement (CFLP) which measures business conditions in the Chinese manufacturing sector. A reading above 50 indicates spread; conversely, a reading below 50 indicates a reduction in industry. Since the Chinese economy dominates the global economy, this economic indicator would affect the Forex market.
Previous edition
REALLY: 52.1
DEV: 0,75
AGAINST: 51.5
DATE: 11/30/2020 01:00
6. Initial claims for the unemployed – Thursday – 13:30 GMT
These data are published by the US Department of Labor, which records the number of people who are applying for state unemployment insurance for the first time. It provides a measure of strength in the job market. A number higher than expected indicates a decrease in this US market, which affects strength and direction. Low numbers are considered positive or bulls for the USD currency. In contrast, high values are considered negative or bearish for the USD currency.
Previous edition
REAL: 803 K
DEV: -1,29
PROTIV: 885 K
DATE: 12/23/2020 13:30
7. Friday – Banks are closed due to the New Year.
Global financial markets and banks will be closed on New Year’s Day. Most Forex brokers stay open for every holiday except Christmas and New Year. Stock exchanges and banks have a slightly different holiday schedule. Banks facilitate the bulk of foreign exchange. When they are closed, the market is less liquid and speculators become more dominant market influence. This can lead to both abnormally low and abnormally high volatility.
Good luck and enjoy a long weekend!