Morning Insights 16th December

Simon Alagbe

Analyst


Instrument: EURUSD

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 1.21652 with take profit at 1.21336

Bullish Preference: Buy position is envisaged if price trades above 1.21750 with take profit at 1.22065

Fundamentals:

French Flash Services PMI (EUR) 9:15 am

French Flash Manufacturing PMI (EUR) 9:15 am

German Flash Manufacturing PMI (EUR) 9:30 am

German Flash Services PMI (EUR) 9:30 am

Flash Manufacturing PMI (EUR) 10:00 am

Flash Services PMI (EUR)    10:00 am

Core Retail Sales m/m (USD) 2:30PM

Retail Sales m/m (USD) 2:30PM

Flash Manufacturing PMI (USD) 3:45 PM

Flash Services PMI (USD) 3:45 PM

FOMC Economic Projections (USD) 8:00 PM

FOMC Statement (USD) 8:00 PM

Federal Funds Rate (USD) 8:00 PM

FOMC Press Conference (USD) 8:30 PM

Comment: The Greenback is envisaged to trade lower in today's session ahead of the all-important end of the policy-setting meeting of the Federal Reserve. The weakness in the Greenback is due to the progress recorded by the congress toward a COVID-19 relief package for ailing businesses in the United States. I expect the Federal Reserve to steer clear of stimulus but will probably sound dovish to send the Greenback further lower. 




Instrument: US30

Technical Analysis 

Bullish Preference: Buy position is envisaged if price trades above 30233 with take profit at 30283.

Bearish Preference: Sell position is envisaged if price trades below 30143 with take profit at 30091.

Fundamentals : 

Core Retail Sales m/m (USD) 2:30PM

Retail Sales m/m (USD) 2:30PM

Flash Manufacturing PMI (USD) 3:45 PM

Flash Services PMI (USD) 3:45 PM

FOMC Economic Projections (USD) 8:00 PM

FOMC Statement (USD) 8:00 PM

Federal Funds Rate (USD) 8:00 PM

FOMC Press Conference (USD) 8:30 PM

Comment: The Dow on Tuesday afternoon notched its best finish since around Thanksgiving as markets scored a bullish lift on renewed hopes that top congressional lawmakers would have met later Tuesday to strike deals to fund the government and push through the fifth round of coronavirus relief. The outcome of the Federal Reserve meeting expected later today will have a major push in the instrument's direction. 




Instrument: GOLD

Technical Analysis 

Bullish Preference: Buy position is envisaged if price trades above 1859.28 with take profit at 1862.15

Bearish Preference: Sell position is envisaged if price trades below 1849.26 with take profit at 1847.91.

Fundamentals : 

Core Retail Sales m/m (USD) 2:30PM

Retail Sales m/m (USD) 2:30PM

Flash Manufacturing PMI (USD) 3:45 PM

Flash Services PMI (USD) 3:45 PM

FOMC Economic Projections (USD) 8:00 PM

FOMC Statement (USD) 8:00 PM

Federal Funds Rate (USD) 8:00 PM

FOMC Press Conference (USD) 8:30 PM

Comment: Gold was up on Wednesday morning in Asia, with investors monitoring progress on U.S. stimulus measures and the Federal Reserve’s policy decision. The rapid progress in COVID-19 vaccine rollouts is also sparking hopes for a quick economic recovery.

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