Uncle Sam won’t be printing a lot of economic reports this week, which means that dollar traders could take their cues from other catalysts.
Which market themes should you pay closer attention to?
Take a look at this list:
Closely watched data releases
- Crude oil inventories (Dec 9, 3:30 pm GMT) to rise by 0.9% after 0.7% gain
- Inflation rate (Dec 10, 1:30 pm GMT) to print at 0.1% (from 0.0%)
- Core CPI also seen improving from 0.0% to 0.1%
- Initial jobless claims (Dec 10, 1:30 pm GMT) to remain above 700K this week
- Producer prices (Dec 11, 1:30 pm GMT) to slow down from 0.3% to 0.2%
- Core PPI could print at 0.2% (from 0.1%) in November
Overall dollar demand
- The U.S. Food and Drug Administration meets this week to discuss the approval of the Pfizer/BioNTech vaccine
- Markets also have eyes on the bi-partisan stimulus bill
- Positive news on the vaccine, U.S. stimulus, and Presidential transition would inspire risk-taking and drag the safe-haven dollar lower
- Other market themes, such as BOC and ECB’s policy decisions; Brexit negotiations, and the Fed’s monetary policy support can also influence the demand for the dollar
- RSI considers the dollar “oversold” against the euro, Kiwi, and the Loonie on the daily time frame
- USD/CHF is also a hair’s breadth away from oversold levels
- EMAs are showing the dollar’s broad weakness against almost all of its counterparts on the daily time frame
- USD is seeing short-term demand against GBP and NZD
- The dollar saw the most volatility against the pound, euro, Kiwi, and the franc in the last week
