News, Trends, & Analytics 17.12.2020

Today the focus is on the growth of business activity in Germany, the Amazon lawsuit, and the World Bank’s forecasts for the oil market.

 

Calendar

12:00 UTC

The Bank of England will decide on the interest rate. The regulator is expected to keep the figure unchanged. However, the event can cause a spike in volatility.

Assets to trade: GBP/USD, GBP/JPY


13:30 UTC

A report on the number of initial applications for unemployment benefits in the United States will be published. An up tick of 800 thousand is expected. A downward deviation will lead to a strengthening of USD positions.

Assets to trade: EUR/USD, USD/CAD

 

News

According to preliminary data, business activity in the German manufacturing sector continued to rise in December. Affects EUR


Head of the European Commission Ursula von der Leyen reported on the progress in trade negotiations between the EU and the UK. Affects GBP


Amazon is asking the court to postpone the execution of the $10 billion contract awarded to Microsoft. Affects Microsoft


Ifo lowered its 2021 GDP growth forecast for Germany to 4.2%. Affects EUR


The World Bank expects oil prices to rise next year. Affects Brent

 

Technical Analysis

Brent

The World Bank has shared its forecast for the oil market for 2021–2022. According to experts, the consumption of raw materials will be 5% below the trend. Oil prices will rise to $44 per barrel in 2021 and $50 in 2022.

Despite slight optimism, Brent quotes may decline as the chart reversed from resistance level 51.

GBP/USD

Strengthening of the currency pair may continue after the chart has formed an inverted Head and Shoulders pattern.

USD/JPY

On the weekly timeframe of the chart, there is a bullish divergence for the MACD indicator. Be prepared for a trend reversal as the US dollar has been showing signs of being oversold.

USD/JPY on this day in history

  • Since 2000, December 17th has been a trading day 13 times.
  • On 30% of those days, the asset finished trading with growth.
  • The maximum strengthening range was 1.93%.
  • The downward trend was limited to 1.58%.

Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.

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