Dec 27, 2019

Learn the important events happening this week in order to use the right forex trading strategies.

Quiet water

For the first time, gains from technology stocks helped the Nasdaq Composite reach above 9,000. Gold prices rose and the dollar fell during holiday trading. Inc. reached the top of the equity company after the e-commerce giant reported a "breaking record" during the holiday season. Yields on 10-year Treasury Bonds fluctuated around 1.9%, while the dollar slipped against other major currencies when US unemployment reporting data reached close to expectations. The Japanese yen is heading for the biggest drop in two weeks.

European markets remain closed. In Tokyo, Shanghai and Seoul, stocks closed with a gain; while exchanges in Hong Kong and Sydney are still closed.

Waiting for phase one

Investors are pushing the $51 trillion MSCI ACWI Global Stock Index to an increase of more than 8% in the last 3 months of the year, a quarterly performance that is only a few times better than in the past decade. When traders "digest" positive data showing strong consumer confidence, they now turn their attention to January 2020 in search of “the first phase” a trade deal between the United States and China.

Tim Courtney, chief investment officer at Exencial Wealth Advisors, said: "Consumers continue to show as a support pillar. They continue to spend and never cut back."

In China, overnight repo rates have dropped to their lowest level since Thursday of 2009, following a recent central bank liquidity pump.

In another development, the pound appreciated in the third session. Crude oil has risen above $61 per barrel in New York. Gold has exceeded $1,500 per ounce, rising through each session this week.

Important event this week

Retail sales and industrial production of Japan are to be announced on Friday.

The currency market

Here are some key moves of the money market:

  • The Bloomberg Dollar Spot index is down 0.2%.
  • Pound increased by 0.3% to $1,3002.
  • The euro rose 0.1% to $1.11.
  • Japanese Yen decreased by 0.2% to 109.64/USD.

Commodity market

Here are some key moves of the commodity market:

  • West Texas Intermediate crude oil futures contract rose 0.9% to $61.63/barrel.
  • Gold increased 0.8% to $1,511.58/ounce.