Market -Weekly Outlook Dec 10 2018

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The global financial markets will pay close attention to U.S consumer price inflation and retail sales data for additional insight into the outlook for monetary policy in the months ahead. In Europe, investors are keeping an eye on the UK Parliament vote on Brexit deal on Tuesday. Before we continue, let’s take a quick look at the U.S dollar index…

 U.S Dollar Index: Continues To Consolidates

As long as 96.85 resistance holds on a daily closing basis, the U.S dollar index remains in a corrective pullback mode and further down couldn’t be ruled out. Support comes at 95.72, a halt is likely, but a cut would open 95.18, further down, support comes at 94.58 level.

On the upside, resistance comes at 96.85, stability below this level will keep the index under pressure. However; above 96.85 sees limited gains to 97.50 level. Above 97.50 will restore the upside momentum and open 98.05 ahead of 98.75 level, further upside, resistance comes at 99.55 level.

Conclusion: The U.S. dollar index sees pullback threats below 97.50/96.85 levels.

USD Index Dec 10 2018

Let’s take a quick look at the most important events that are likely to affect the market this week:

Tuesday, December 11

The U.K will report on Average Earnings Index +Bonus (Oct) and Claimant Count Change (Nov) at 09:30 GMT. (Strong effect).

Germany will release data on ZEW Economic Sentiment (Dec) at 10:00 GMT. (Average effect).

The U.S will report on producer price inflation. (MoM) (Nov) at 13:30 GMT. (Average effect).

UK Parliament vote on Brexit deal. (Strong effect).

Wednesday, December 12

The U.S will report on consumer price inflation at 13:30. (Average effect).

Thursday, December 13

The Swiss National Bank will announce its benchmark interest rate and publish a rate statement at 08:30 GMT. No change in policy is expected. (Strong effect).

The European Central Bank will announce its benchmark interest rate and publish a rate statement at 12:45 GMT. President Mario Draghi will hold a press conference 45 minutes after the interest rate announcement. (Strong effect).

The U.S will publish the weekly report on initial jobless claims at 13:30 GMT. (Average effect).

Friday, December 14

The U.S will end the week with data on Retail Sales for Nov at 13:30 GMT. (Strong effect).

You can follow the rest of the week’s economic events by visiting:

http://www.askhaitham653.com/live-calendar/

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