Busy week ahead for markets
Plenty of data is scheduled for release this week as the US prepares for a change in administration.
The USD gained in strength on Friday, sending paired currencies down. The EURUSD began the day at $1.21493 and ticked up to a high of $1.21618 early. Things went south from there as the pair declined for the rest of the session, hitting lows $1.20746 at the close. It is now sitting at $1.20821. The GBPUSD opened Friday at $1.36839 and edged up to a high of $1.36976 soon after. Like the euro, the pound fell over the rest of the day, hitting lows of $1.35714 late. It is now trading at $1.35931.
Indices reversed some of the gains made earlier in the week, with the Dow and Dax both affected. The Dow started Friday at 31,016.88 and lifted to a high of 31,053.93 in the first hour of trade. The slide began shortly afterwards and culminated in the Dow reaching lows of 30,620.55 late. It has come off those lows and is now trading at 30,819.30. The Dax followed a similar path after beginning the day at 13,971.89. After ticking up to an opening-hour high of 13,989.42, the German index fell for most of the session, bottoming-out at 13,670.39 late in the day. It has come off those lows and is currently trading at 13,765.60.
The week ahead sees a stack of data set for publication, while central banks also feature. Meanwhile, the US is preparing for a change in White House administration. Data published today and the most significant this week includes:
Today – China GDP, Industrial Production, Retail Sales, Fixed Asset Investment, Unemployment Rate and NBS Press Conference, Japanese Revised Industrial Production, Eurogroup Meetings
Tuesday – BoE Governor Andrew Bailey speaks
Wednesday – UK CPI
Thursday – ECB Main Refinancing Rate and Monetary Policy Statement, BoJ Policy Rate, Monetary Policy Statement and Outlook Report, BoC Overnight Rate, Rate Statement, Monetary Policy Report and Press Conference, Australian Employment Change and Unemployment Rate, President-Elect Joe Biden speaks
Friday – US, UK, European, German and French Flash Manufacturing & Services PMIs, UK Retail Sales, NZ CPI, ECB Press Conference, BoE Governor Andrew Bailey speaks
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