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