A1 Trading Company

December 5, 2021

Forex Market Recap (28-03 December 2021)

Bart Kurek

The JPY was the big winner this week while the AUD was the biggest loser by Friday close. Last week’s negative sentiment sparked by the rise of the Omicron variant spilt over into this week and seemed to strengthen as the week rolled on. Despite there being no hard evidence yet of the variant being more deadly than previous variants, headlines of new cases, a higher transmission rate and rising lockdown protocols were enough to push traders to unload risk assets.

USD:

  • Biden says he doesn’t expect more travel restrictions or lockdowns as omicron Covid variant spreads
  • Fed Chairman Powell retires the word "transitory" in describing inflation
  • House Prices Are Up 18.5% the FHFA reports
  • ISM Manufacturing PMI rises to 61.1 in November as expected
  • ADP National Employment Report: Private Sector Employment Increased by 534,000 Jobs in November
  • Fed’s Mester open to faster taper to win space for rate hike
  • Jobless claims: 222K, up 28K from previous week
  • Senate passes bill to avert government shutdown, sends to Biden for signature
  • FOMC’s Quarles: Fed would have to consider rate hikes if inflation remains above 4% by next spring
  • IHS Markit US Services PMI dips to 58.0 in November vs. 58.7 in October

EUR:

  • ECB Panetta says they doesn’t need to intervene on inflation for now
  • German inflation surges to 6% as ECB insists spike will pass
  • French inflation hits 3.4%; highest rate in more than a decade
  • Eurozone PPI at 5.4% m/m in October, 21.9% y/y
  • Eurozone Retail sales rose 0.2% in October, below expectations
  • German services PMI was slightly up in November to 52.7 vs. 52.4 in Oct.
  • France services PMI rose to 57.4 in Nov. from 56.6 in Oct.
  • ECB Lagarde says they are likely to avoid a long-term policy commitment in December given pandemic developments and high inflation reads

GBP:

  • Mortgage approvals slide to 67K in October, the lowest since mid-2020
  • BoE’s Bailey says economic impact of Covid remains strong
  • House prices hit 10% y/y in November; 0.9% m/m
  • Services PMI in November: 58.5 vs. 59.1 in October; “New business growth hits five-month high despite surging price inflation”
  • BoE Saunders, a known policy hawk, says he may pause on rate hike vote due to Omicron

CAD:

  • Industrial Product Price Index (IPPI), increased 1.3% m/m in October and 16.7% y/y; RMPI was up by 4.8% m/m in October, following a 2.4% m/m increase in September
  • GDP grew by 5.4% in the third quarter of 2021, better than 3.0% forecast
  • Building Permits Rise 1.3% m/m in October
  • Employment rose by 153K in November, much higher than 37K expected growth; Unemployment rate fell from 6.7% in October to 6.0%

JPY:

  • Japan einstates ban on entry of foreign visitors as Omicron spreads
  • Manufacturing PMI rose to 54.5 in November
  • Policymaker Adachi says as Omicron risks grow, the BoJ in no hurry to boost stimulus
  • BoJ member Suzuki signals a chance of ending pandemic-relief programs
  • Japan services sector grows at fastest pace since 2019 in November to 53.0 vs. 50.7 in October

AUD:

  • Building approvals slumped 12.9% vs. projected 1.4% dip
  • Private sector credit rose 0.5% vs. 0.6% forecast
  • AIG manufacturing PMI shrugs off Delta-related lockdown in November
  • Trade balance narrowed from 11.82B AUD to 11.22B AUD
  • Retail sales rose by another 4.9% as expected
  • Australia tightens internal borders to curb spread of Omicron

NZD:

  • New Zealand building permits drop 2% in October (-1.9% in September, +10.5% y/y)

A1 Edgefinder

AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.

Discount code: 'READER'

Access Now

Free

Trading Plan Template
Struggling to build a successful trading plan? Download our template to get started today!
Download
Expecting A Pullback

Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]

Read More
Traders Wait For More Inflation Data

This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]

Read More
Trading Into PMI Data on EUR, GBP and USD

This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonecrossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram