Technical Analytics Report

Daily Market Reviews 21 Dec 2021

 

EUR/USD

 

The European currency is showcasing cryptic movements in trading against the US dollar within today’s Asian session, combining close to the level of 1.2800. On the previous day, the instrument made attempts to rectify growth, which was usually successful, though there was a  deteriorating mix of emotions among European investors. The market is once again indifferent to reports with new and strict rules in Europe regarding the outspread of the Omicron variant coronavirus strain. The Netherlands has already announced a partial lockdown for all non-food stores up to January 15, the UK has also announced new restrictive measures within this week, and Germany and France are going to restrict entry from countries that have the worst epidemiological conditions right ahead of the upcoming winter holidays. The macroeconomic background of this current new week remained stagnant. On Tuesday, there was a data publication of the Gfk Consumer Confidence Index inside Germany with predictions for January movements expectation. Getting close to the end of the session, statistics on the level of consumer confidence in the eurozone for December month will also be published.

 

GBP/USD

 

The pound showcased different directional trading movements within the morning trading session, holding close to the support level of 1.3200. On the previous day, the instrument was shown and took attempts to test for reaching close. To the breakdown, towards the end of the daytime session, the British currency can survive by retaining positions, recovering from lows in the local market. The pressure created on the quotes is emphasized by the unpredictable scenarios around the new wave strain of coronavirus incidence within the UK. On the eve where winter holidays are about to begin, epidemiological statistics are again against, and the main official authorities are planning to return upon the restrictions on traveling and the work of service establishments. UK macroeconomic statistics released for publishing on Monday have no major impact on the volatile movements of the market. Corrected movement House Price Index lost 0.7% in December month after decreasing from 0.6% in November. In yearly terms, the indicator accounted for the previous growth at approximately 6.3%. On another day, market participants will pay attention to data from the UK and the US on GDP from market movements for Q3 of the year 2021.

 

NZD/USD

 

The New Zealand dollar is showing really weak and Improvised gains against the US dollar within the Asian-trading session, showing little recoveries out of  “bearish” start to the week that led to renewed and revamped local lows from December 15. At the moment, NZD/USD is getting tested at 0.6720 for reaching a breakout, responding to new and fresh drivers that appear on the market. The instrument is a little bit in favor of macroeconomic statistics from New Zealand. Credit Card expenditure in November month is a little bit adjusted by 0.1% after decreasing by 5.6% in October month, while analysts are expecting a decrease of 2.1%. At the same moment, the data about consumer sentiment within New Zealand released on the previous trading day ultimately disappointed investors. Westpac Consumer Survey in Q4 2021 showed a decline in the indicator from 102.7 points to 99.1 points, while all the primary statistics indicated a decline of only 101.5 points.

 

USD/JPY

 

The US dollar is traded in a weak uprising against the US currency, combining close to 113.60. USD/JPY is showcasing stagnant market movements, which is connected with low investors right before the winter holidays. At the same time, the dollar and the yen are favored by the fact that all the associated risk positions have been settled against the background of a worse spread of epidemiological situation in Europe. Despite rising evidence that the Omicron coronavirus strain is going to be a little less fatal than previous mutations and variants, the increase in several new infections raises an alarm. The authorities are pushing hard to adjust the present restrictive measures, which pose a risk with new difficulties about the recovery of the region’s economy.

 

XAU/USD

 

Gold prices are slightly showing improvements within the morning trading session, combining close to 1790.00. On the previous day, XAU/USD showed a sudden decrease among a worsening epidemiological situation within Europe, where authorities are paying attention to bringing back quarantine measures due to the fast spread of the new Omicron Variant This negative background is usually predicted for the increase of metal quotations, as investors always get rid of risky assets favoring “safe” gold, but in present, the scenario has been changed within the commodity markets, and also on stock exchanges in the US, Europe, and Asia. The pressure that is created upon the trading instrument is also worsened by the prospect of a further rise in rates of interest by leading regulators across the globe. In December month, the Bank of England suddenly raised interest rates, while the European Central Bank (ECB) and the US Federal Reserve further increased the speed of phasing out quantitative easing (QE) programs. The People’s Bank of China, on other hand, decreased the rate by only five basis points, showcasing its fundamental disagreement with the present dominating trends.