Pay Attention To US GDP Number This Week
The US Dollar was under selling pressure last week as progress toward a massive U.S. government spending bill and COVID-19 relief measures whetted risk appetite.
The Federal Reserve kept rates unchanged last Wednesday and signaled that near-zero rates would continue through 2023 to support the next phase of the economic recovery as the vaccine rollout gets underway.
Fed Chairman Jerome Powell said the first-quarter data will show a significant impact from a surge in the virus, but the economy should perform strongly in the second half of next year, underpinned by a boost from the vaccine rollout.
Looking ahead, keep your eye on the US GDP Growth on Wednesday. The US third-quarter gross domestic product is expected to come to 33.1%.
Besides the US GDP numbers, this week's calendar also features U.S. data on Core Durable Goods Orders, Existing Home Sales, New Home Sales, New Home Sales as well as Crude Oil Inventories
US Durable goods orders excluding transportation are expected to ease to 0.6% in November from 1.3% in the previous number.
The Fed’s preferred measure of inflation, the core PCE index, which calculates spending minus volatile food and energy costs, arrives along with personal spending and income numbers from the Commerce Department Wednesday. The core PCE is expected to come out at 1.5%, year on year basis.
Get ready for the holiday week. Liquidity over the Christmas holiday is expected to be particularly thin so please take the necessary precautions to ensure you are not affected by increased volatility and intermittent pricing.
The EURUSD pair showed an upward movement and closed last week above the 1.2214 main support level. As long as the pair stays above 1.2214, on a daily basis, the upward movement may continue and we will see 1.2391 as a resistance level. On the downside, if the price drops below 1.2214, we will follow the next support level at 1.2046.
Support : 1.2214 - 1.2046 - 1.1819
Resistance : 1.2391 - 1.2536
The GBPUSD pair showed a profit-taking action and dropped below the 1.3517 main resistance level. If the price stays below 1.3517, we will see the support level at 1.3392. On the upside, if the price goes beyond 1.3517, the daily resistance level can be found at 1.3599.
Support: 1.3392 - 1.3313 - 1.3231
Resistance: 1.3517 - 1.3599 - 1.3688
The EURJPY pair closed last week below the 126.69 main resistance level. If the currency stays below 126.59 on a four hourly basis, we will watch the support levels at 125.85 and 125.07. On the other hand, If the pair rises above 126.69, the next resistance level is holding at 127.52.
Support: 125.85 - 125.07 - 124.24
Resistance: 126.69 - 127.52 - 128.39
The Gold Price showed an upward movement and moved up above the 1873 main support level. As long as the price stays above 1873, on a four hourly basis, we will follow the resistance levels at 1904 and 1932. On the downside, if the price breaks down below 1873, the next support level will be at 1854.
Support: 1873 - 1854 - 1829
Resistance: 1904 - 1932 - 1964
20 Dec 20 (Sun)
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