First week of the New Year is always interesting as traders make new strategic allocations. Next week will host the release of the US jobs data for December, an import report in terms of future Fed policy moves. Apart from that, investors will also focus on data from the US and Europe as well as OPEC output decision. Be sure to watch USDCAD, OIL and DE30 next week.
USDCAD
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Open account Try demo Download mobile app Download mobile appA time has come for the release of key US data - NFP report for December (Friday, 1:30 pm GMT). Market expects an addition of 400k jobs. Upbeat report will give the Fed more reasons to accelerate the pace of the tapering process and tighten monetary policy sooner than expected. USDCAD will be on the watch around the release time as the Canadian labour market will be released simultaneously. On Wednesday the pair will also have a chance to move following the release of the ADP report and FOMC Minutes. USDCAD moved higher in December, however buyers failed to break above 1.30 resistance before Christmas and price pulled back towards 1.27.
OIL
Brent reached $80 per barrel in the middle of the week, however prices slipped slightly during the final session of 2021. Oil will remain in the centre of attention next week as OPEC+ is set to make a decision on output on Tuesday. Most investors expect that OPEC and its allies will probably stick to their existing policy of modest monthly increases in oil output. Therefore any change in the current rhetoric may trigger sharp price movements.
DE30
German DAX booked 15.0% yearly gain and is trading near its all-time high reached in November. Are current valuations justified? Will the economy follow in the footsteps of the markets? We will know the answer to the first question this week, as data on retail sales (Tuesday) factory orders, preliminary CPI (Thursday) and industrial production (Friday) will be published in Germany.
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