Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
Major currency pairs in consolidation patterns as investors are away for Christmas, momentum to pick up as the new year draws near
MORNING BRIEF
Yesterday was a very quiet day for currency markets with market participants away from their trading desks for Christmas. The Euro and the Pound traded near the same levels for the whole day with only the FTSE 100 drawing our attention as it continues to climb upwards. For the day ahead we expect the calm trading conditions to continue and liquidity and volatility to remain very low and with most brokers closing for Christmas early in the afternoon we suggest that you take the day off and spend it with your families or loved ones. We’re looking forward for the new year to come as we expect investors to return from their holidays eager to capitalize on the latest developments. Don’t forget that Fed’s decision to taper came late in 2013 and with the Holidays’ season so close to it investors and institutional clients didn’t have the chance to fully trade on it. We believe that as the holidays end we will have a strong demand for Dollars and it will be very interesting to see how the Euro will react towards this and whether our expectations for an evenly matched Pound are spot on.
US Durable Goods and New Home Sales
On the Economic Calendar today we only have a couple of news releases and even though it’s Christmas and we expect to see little reaction from the currency pairs it’s very important to note down these figures as they will dictate how quickly the Fed will proceed with further tapering. Coming at 13.30 the US Durable Goods report is expected to show an increase in the demand for long lasting products in the US and as the domestic economy seems to progress at a satisfactory pace this will be a positive sign for the Fed to continue unwinding its asset purchases. Later in the day, the New Home Sales report is also expected and the housing market is another important sector that we monitor and plays a significant part in Fed’s decision-making progress. As we mentioned above, we expect little reaction from the Dollar to these reports especially since they will be released a few hours before markets closing.
Economic Calendar
|
Time |
Currency |
Event |
Importance |
Forecast |
Previous |
|
13.30 |
USD |
Durable Goods |
High |
1.3% |
-2.0% |
|
15.00 |
USD |
New Home Sales |
Medium |
-2.0% |
25.4% |
This is the free, time-delayed version of NewsletterPro, a subscription-based product.
If you would like to receive it before 7:30am, please subscribe by clicking here.
TECHNICAL ANALYSIS & LEVELS
EUR/USD
The Euro remained generally unchanged yesterday trading around the 1.3700 mark. The pair has pulled back to its 200-period EMA and we expect it to remain range-bound for the rest of the day. The apparent downtrend however is expected to pick up pace as investors return from their holidays and we believe that the Euro will continue falling against the Dollar and the 1.3600 level seems to be our first mark.
GBP/USD
Same as the Euro, the Pound spent its day hovering near the 1.6350 area and with no UK-related news the pair will most likely remain unchanged for today as well. As soon as the holidays season ends we’re very eager to find out how will the Pound react against the rising Dollar. In our recent reports we make word for a strong Pound and it will be very interesting to see how it will fare against the demand for Dollars.
FTSE 100
The FTSE 100 continues to be on the rise and the index nearly reached the 6,700 points level yesterday. The instrument appears to be extremely overbought at these levels and we wouldn’t like to enter into any trades even if we didn’t have Christmas ahead of us. We expect a retracement to occur at some point and until then a trade in the UK index holds more risk than the expected gains.
Gold
Gold remained also range-bound yesterday trading around the $1,200 level. We expect Gold to fall even lower as the holidays end and the demand for Dollars puts pressure on Gold’s price. Our analysis makes word for Gold falling towards the $1,000 mark and maybe even lower if the US Dollar continues to strengthen during the coming year and at this time all signs point to that direction.
The above charts have been created using FXCM’s Trading Station platform.
STOCK MARKET FOCUS
[Restricted Content] Plc.
The Alpesh Patel Momentum/Value filter has indicated [Restricted Content] Plc. as our stock of the day.
Company Information: [Restricted Content]
Created using Sharescope Pro
[Restricted Content] Plc. has been rated an 9 out 10 in our Value/Growth rating and gets an A Grade rating on our Bullish Momentum meter. The P/E ratio is relatively low suggesting that the stock might be underpriced, the ratio of the price earnings growth is also low and Turnover is up year on year supporting the growth potential. From a technical standpoint, the MACD indicator is pointing upwards suggesting further incline. The suggested holding period for a stock of this type is2-3 months.
Important Information
The filters and settings in the Special Edition of the Sharescope software use Alpesh Patel’s proprietary criteria to generate suggestions of securities worthy of further investigation. They DO NOT CONSTITUTE INVESTMENT ADVICE.
We would like to wish you Merry Christmas and all the best for you and your families.
This is the free, time-delayed version of NewsletterPro, a subscription-based product.
If you would like to receive it before 7:30am, please subscribe by clicking here.
Disclaimer Notice
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.
