For this week, be ready for the advance US GDP as well as Prelim UK GDP, as both will have a pronounced impact. Furthermore, pay attention to the FOMC statement on Wednesday. Having pointed out these vital releases, here’s your brand new Trade360 weekly outlook, from the only Online Trading platform powered by CrowdTrading. We give you the metadata that enables you to Trade on the world’s hottest and freshest market trends.
As the EU’s existential crisis deepens, the single currency is feeling the pressure. Following a strong performance last week, the EUR/USD returned to disappointing form. The pair fell 78 pips, to finish the week at $1.0796. Be ready for the Advance US GDP on Friday at 12.30 GMT. This overall production data has a much bigger impact than either the Preliminary or Final data and a decent number ought to boost the Dollar. Last month, the 1.5% figure was slightly below the forecast and with movement of 62 pips on EUR/USD there was a profit of $230 to be made from a $100 investment.
Meanwhile the AUD/USD experienced a small 3-pip jump, ending the week at $0.7002, and the USD/CAD took a steep dive, falling 147 pips, to a rate of $1.4119CAD.
Confidence remains the key to the US “tortoise” recovery, so keep an eye on the monthly CB Consumer Confidence report, released on Tuesday at 15.00 GMT, This well respected survey of 5,000 households has the potential to boost confidence in the economy and with it, the USD. On December 29th, 40-pip movement generated a $150 profit on a $100 EUR/USD position.
Brexit is now looking increasingly likely, and the GBP/USD pair rose 44 pips, closing at $1.4265. Watch the Prelim UK GDP data on Thursday at 09.30 GMT. Like the US equivalent, this event has a more pronounced impact than both the Second Estimate and the Final Number and an impressive outcome should give Sterling a real shot in the arm. In October, the 0.5% result was just under the forecast and 74-pip movement delivered a profit of $205 from a $100 GBP/USD investment.
Crude Oil rallied somewhat from its recent nadir at the end of last week. West Texas Intermediate (WTI) rose 9.01%, clearing the $30 mark, to close at $32.19. Likewise, Brent Oil jumped 10.02%, ending the Trading week at $32.18 a barrel.
Gold, on the other hand, had a worse week. An ounce of COMEX Gold fell 0.17%, to close at $1,096.30. Gold-Spot also tumbled, shedding 0.30%, to finish at $1,097.95 an ounce.
After a very poor start to 2016, the major US indices all registered growth last week. The DOW climbed 1.33%, up to 16,093.51. The S&P 500 was up 2.03%, at 1,906.90, and the NASDAQ put on 2.66%, ending the week at 4,591.18.
Make sure to monitor the new FOMC Statement on Wednesday at 19.00 GMT. After making history on December 16th, the Fed is under pressure for further rate hikes. Bear in mind that last month, excellent movement of 115 pips created a $425 profit on a $100 EUR/USD investment.