Last week was the first week after the US presidential elections, and the markets are starting to settle in their old rhythm again. There were some big moves last week, and I’m happy to see that my weekly forex outlook of last week was right on AUDCAD and AUDNZD. The GBP pairs didn’t really go anywhere but sideways, but that’s the unpredictability of the market for you.
The upcoming week
Noteworthy economic news for this week is:
- Monday: ECB President Draghi’s Speech
- Tuesday: CAD retail sales / US existing home sales
- Wednesday: US durable goods / US new home sales / US FOMC minutes / EU manufacturing PMI
- Thursday: German GDP
- Friday: UK GDP
Keep in mind that the US markets are closed on Thursday and will close early on Friday. This is due to Thanksgiving day. A closed US market usually means that trading slows down a bit and might result in a bit more unpredictable price behaviour. Have a look here to find out more.
Also note that the US dollar has been quite bullish recently. This is party because of investors anticipating that the Trump presidency will stimulate the US economy, but also because the December Fed rate hike is now almost a sure thing. Some of the pairs below are reversal setups that imply a bearish US dollar, so I will be extra careful in picking my trades for those US pairs.
This week, I’m keeping an eye on the following pairs:
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