Weekly Market Analysis: 21 - 25 December 2020

Weekly market analysis 21 - 25 December 2020 will discuss things that can affect the market such as, the US Dollar strengthened against several other major currencies in early movements this week in the Asian session, the impact of Greenback purchases made by investors, the impact of many countries tightening restrictions (lockdowns) against the COVID-19 virus. There is news that the US Congress has reached an agreement on a $ 900 billion COVID-19 relief package, with the House of Representatives set to provide its views and votes on the agreement on the package, in upcoming hearings and meetings followed by the Senate. The US Food & Drug Administration (FDA) has given emergency use approval for the Moderna Inc mRNA-1273 vaccine. The UK is the latest European country to impose a new & strict lockdown to curb the new strain of the Corona virus. This has caused European neighbors, including France, Germany, Italy, the Netherlands, Ireland, & Belgium to close access for travelers to and from the UK as well as shipping goods from the UK. Other countries are also planning to consider implementing similar measures. "News of strict lockdowns & Brexit deadlock has left markets disoriented and panicking, leading to a strengthening of the Greenback and a weakening of the Pound," National Australia Bank senior currency strategist Rodrigo Catril told Reuters. Gold fell on Friday's close last weekend, due to the strengthening of the US Dollar. This strengthening was due to the failure to reach an agreement on the Covid-19 relief fund stimulus until the market closed last week. This morning in the Asian session, Gold's movement jumped due to news that last Sunday, the US Congress had reached an agreement on a US fiscal stimulus of $900 billion.

1. Important Data/High Impact on Weekly Market Analysis 21 - 25 December 2020

1.1 Final GDP (GBP)

Tuesday, 14:00 WIB. This data illustrates the level of a country's purchasing power where the change in the inflation-adjusted value of all goods and services produced by the economy. This data is released every three months, approximately 85 days after the quarter ends. There will be 2 versions of quarterly GDP released approximately 45 days apart, namely preliminary and final. The preliminary GDP data release is the earliest and thus tends to have the greatest impact on market movements.

1.2 Final GDP (USD)

Tuesday, 20:30 WIB. This data also illustrates the level of purchasing power of a country, where the change in the inflation-adjusted value of all goods and services produced by a country is used to see the level of economic growth. There will be 3 versions of GDP released a month apart - Preliminary, Advanced and Final. The Advance release is the earliest and thus tends to have the greatest impact.

1.3 Crude Oil Inventories (USD)

Wednesday, 22:30 WIB. This data records the change in the number of barrels of crude oil held in stock or stored by commercial companies during the past week. This data is released weekly, 4 days after the week ends. This data is a key measure of the imbalance between supply and demand in the market, which can lead to changes in production levels and price volatility.

2. Technical Review According to Weekly Market Analysis 21 - 25 December 2020

2.1 EUR/USD

 

2.2 USDCHF

2.3 GBPUSD

2.4 USDJPY

2.5 Gold

2.6 AUDUSD

2.7 Oil

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