Giving or getting? A rate hike may have you profiting this holiday season.
This is your binary option and forex signals video news update for December 7th through the 11th, 2015.
The “biggest week” of the trading year has come and gone and we called it right here, at Small Money Made Big. The Euro hit the spiked egg nog and shot up. This took many pundits by surprise, while the USD sobered up against its counterparts.
The persistence of OPEC to rollover its output policy for the first half of the year is driving down oil prices. Crude is on the precipice of going below $40 a barrel and staying low for the foreseeable future unless unrest in the Middle East turns the tide.
By trying to keep the Euro weak for the long term, Draghi created a temporary spike in the Euro by dampening 2016 inflation forecasts down to 1%, from the previous 1.1% and keeping in check any new Q.E. purchases. In all the disappointment from traders who jumped in on the rumor of increased Euro stimulus, they were left “high and dry” by the more than expected dovish stance from Draghi and the ECB. Many were left holding an empty bag.
With speaking engagements from the various “Fed heads”, which included the “notorious” Janet Yellen, this week they continue paving the way for lift off on rates for the last meeting of the year on December 16th. Has the market already priced in the rate hike in anticipation of the announcement that seems to be nothing more than a formality at this point? Not so fast! As we anticipate lift off, mixed in with the uncertainty of Asian and emerging markets along with the Euro zone, this will trigger a cocktail of volatility to end the year with bang!
As we approach the new year, will we see the USD take a prolonged down turn against its forex currency counterparts? I don’t know if a prolonged down turn will be in play for the USD since it’s economic picture is panning out to be a lot more rosy than most, but a blip of weakness appears to be headed down the pike after the rate hike.
After last week’s bevy of releases, this week looks to be a bit lighter on the docket, but chalked with market moving events for the week that include:
The Kiwi’s rate policy statement. The Reserve Bank and Governor Wheeler look to keep things on par for now, but the action will hit with crafted words that will hint to whether a cut is forthcoming as the commodity driven economy continues to suffer from weak demand that threatens stagnancy.
Business confidence and unemployment rate for the Aussie. Australia’s hopping real estate sector will be chilling; and with prospects of the commodity market looking dim for the first quarter of the year, the Aussie might be experiencing a couple of jabs that may have it staggering to catch its’ bearings.
For the Yen, there will be a speaking engagement from Governor Kuroda. He will provide perspective for the coming year. Don’t expect any fireworks hitting the yen as he continues due course in hopes of finding higher ground on the inflation forefront for 2016.
The Sterling will have have its Monetary Policy Statement. Expect that Carney, and the BOE, will be poised to show themselves as an admirable adversary to the Euro and the USD as it looks to gain traction on meeting inflation targets for 2016. They may not make a move on hiking the rate, but it’s positioning will have the Sterling standing proud with strength against its counterparts.
The USD will have retail sales numbers and unemployment claims. Unless these numbers shock with a dire revelation, we will see ourselves in the cockpit with Fed head Yellen as she launches us off the tarmac and into the turbulence of a premature rate hike.
Whether you’re getting or giving stuff this holiday season (or both) you want to make sure you’re getting “in the money” on your trades and giving yourself the best opportunity for profit every time you enter a trading session. Be sure to have your gift bags filled with profit.
The best way to do this is by having a great trading system. Give yourself the gift of profit by checking out our winning trading systems at SmallMoneyMadeBig.com