Bitcoin At the end of the past week, Bitcoin broke through the big resistance level of $50 400 and reached $51 500 after the worse-than-expected US labor data…
All eyes focusing on Fed
2020-12-16 • Updated
Ichimoku Kinko Hyo
USD/JPY: The pair is trading below the cloud. Further bearish pressure will lead the currency pair to retest the previous lows.
XAU/USD: Gold consolidates above the 23.6% retracement area the last day. Bullish trend gains momentum.
European Market View
Asian equity markets traded higher as the region received a tailwind from Wall Street where all major indices were lifted amid stimulus hopes. Looking ahead, highlights from macroeconomic calendar include UK and Canadian inflation, Eurozone, UK & US flash PMIs, US retail sales, DoEs, FOMC rate decision & press conference, ECB's de Guindos, Schnabel speeches. Optimism over a $1.4 trillion U.S. spending package increased after House of Representatives Speaker Nancy Pelosi invited other top congressional leaders to meet late on Tuesday to hammer out a deal to be enacted this week. Markets will now look to the U.S. Federal Reserve for new projections on whether the economy will suffer a double-dip recession or is on the cusp of a vaccine-inspired boom.
The central bank is to release a statement later in the day, with analysts expecting some guidance on when and how the Fed might change its bond purchases. Optimism for a trade deal on Brexit also boosted stocks, while contributing to a weaker dollar against the British pound and the euro.
EU Key Point
- Dollar holds a touch weaker to start the session
- China says that Australian government should take China's concerns seriously
- Gold set to launch higher on Fed's last meeting of the year
GBP/USD is moving inside the ascending channel. Since it’s in the lower part of this channel, the pair should reverse up and continue moving in zig-zag.
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