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Weekly outlook | year- end in sight
Updated Updated Fri, 2024 December 27 12:49
Important events this week:
As the final days in 2024 approach, financial markets will come to an end and volatility might be lower. This week only hosts minor important news events, which might not offer major impact. Yet, the political uncertainty remains a key driver of market momentum in the coming weeks ahead. Certainly, the changing landscape with US President Trump’s inauguration in January might also cause markets to move erratically. Worth noting also that during the Christmas days even minor news could cause a sudden spark on volatility as liquidity remains very thin.
– CA gross domestic product – the backward-looking indicator might still move markets, should the data come out differently than expected. The forecast offers a slight increase at 0.2%. Any stronger data could boost the CAD again, which had lost sharp momentum in the past three months. In particular against the US- Dollar the Loonie was losing major momentum.
As the monthly chart above shows, the currency pair had moved towards the 1.4600 area, which marks a strong resistance zone. Should the market start a correction at that level, a triple- top might be formed indicating a push to lower levels. Furthermore, the push to the upside during most of 2024 could now come to an end as traders close their positions towards the end of the year. This could cause a retracement to the downside. The gross domestic product from Canada will be released on the 23rd December 23, 2024, at 14:30 CET.
– US unemployment claims – the employment data from the US is one of the last important pieces of information being released this year. With 218.000 new unemployment claims the data might be in- line with recent releases. A surprise uptick could yet offer downside momentum for the Dollar. Most currencies have lost sharp momentum against the Greenback and markets might face some profit taking as well towards the end of December.
A closer look at the weekly chart of the AUDUSD currency pair reveals that the market has just broken the psychological 0.6300 support zone. Further downside potential might hence occur. Yet the market might just be stretched and could also face profit taking. This could cause the market to run higher in the coming days ahead. The news event will be released on the September 27, 2024 at 14:30 CET.
