market review 18 December 20

18 December 20

Economic Data, Brexit, and Capitol Hill to drive the Majors

Economic data puts the EUR, Loonie, and the Pound in focus. Brexit updates and stimulus talks from the U.S will be key, however.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Germany’s IFO Business Climate Index and wholesale inflation figures are due out later this morning.

Expect the IFO numbers to have the greatest influence, with the markets expecting a marked pickup in sentiment.

Away from the economic calendar, however, Brexit and updates from Capitol Hill will also provide direction.

At the time of writing, the EUR was down by 0.11% to $1.2255.

For the Pound

It’s a relatively busy day ahead on the economic calendar. Key stats included November retail sales figures.

Following the BoE monetary policy decision on Thursday and the impact of lockdown measures, the markets may be forgiving with COVID-19 vaccinations underway.

While any disappointing numbers will test Pound support, direction on the day will ultimately come from Brexit talks. There are less than 2-weeks remaining until the end of Britain’s transition period.

At the time of writing, the Pound was down by 0.23% to $1.3554.

For The USD

It’s a quiet day ahead on the economic calendar. 3rd quarter current account figures are due out of the U.S that will likely be brushed aside.

On the day, the focus will remain on Capitol Hill and COVID-19 news updates

https://www.fxempire.com/news/article/economic-data-brexit-and-capitol-hill-to-drive-the-majors-689292




Forex technical analysis and forecast

EUR/USD, “Euro vs US Dollar”

After completing the ascending wave at 1.2200 and then returning to 1.2130, EURUSD is growing again to reach 1.2222. Later, the market may start a new correction with the closest target at 1.2180.

https://www.investing.com/charts/forex-charts

GBP/USD, “Great Britain Pound vs US Dollar”

After forming a new consolidation range around 1.3430 and breaking it to the upside, GBPUSD has reached the target at 1.3550; right now, it is consolidating below the latter level. If later the price breaks this range to the downside; the market may form a new descending structure towards 1.3419; if to the upside – resume trading upwards to reach 1.3620 and then start another decline with the target at 1.3300.

https://www.investing.com/charts/forex-charts

USD/CHF, “US Dollar vs Swiss Franc”

After completing the descending wave at 0.8830 along with the correction towards 0.8880, USDCHF is forming another descending structure to reach 0.8811. After that, the instrument may start a new growth with the first target at 0.8900.

https://www.investing.com/charts/forex-charts

https://www.fxstreet.com/analysis/forex-technical-analysis-and-forecast-majors-equities-and-commodities-202012170932

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