Limited volatility in the financial markets just a couple of days ahead of the Christmas holiday and it seems that investors are happy with their positioning at the time. Like we mentioned in our report yesterday these 2 weeks are traditionally very slow and participation in the markets is reduced hence we should not expect any radical moves.

Investors looked to take some profits off the table yesterday especially in the Euro following the 1.0800 lows of last week on the back of the Fed decision and policy adjustment to reflect the central bank’s bullish outlook. The coming year is expected to be a strong year for the US currency and if the ECB continues to ease or eases even further there is the possibility, far-fetched at this time, of the Euro reaching parity.

However we should not expect any developments on this front until the end of the year, traders are planning their holidays at this time or they are already on their way there so price action in the Forex market will struggle to produce any amazing swings. The economic calendar is obviously light and with Christmas on Friday this week will have one trading day less.

Yesterday the price action was limited and traders were more focused on the Euro rather than anything else. The Single currency managed to overcome the 1.0900 resistance level as profit-taking drove the Dollar lower against its European counterparty but again the momentum was limited and it would be hard to see any serious continuation to this move. If the Euro manages to build a base of support above the 1.0900 level then we might see an attempt to rally towards 1.1000 as profit-taking ahead of the year end continues next week.

The Cable remained unchanged and traded around the 1.4900 area still looking for direction and momentum as there is no fresh news from the UK to generate some friction. There was limited profit-taking on the Cable yesterday as traders were not so heavily positioned against the British currency, hinting on the fact that the Pound will be the next currency to get a rate hike some time in 2016. Today the release of the Public Sector Borrowing report might spark some volatility in the Pound with the pivot level being at the 1.4950 as any rallies higher have to overcome this area first.

Economic Calendar


Past performance is not indicative of future results. Trading forex, CFDs and equites carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts. The information provided by InvestingBetter.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. InvestingBetter.com are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. InvestingBetter.com and/or its owners will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on InvestingBetter.com. InvestingBetter.com does not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action. 

EUR/USD News

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance. 

GBP/USD News

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited. 

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures