Compared to the busy trading sessions of the
last weeks, this one will be fairly calm. The Christmas holidays are approaching and
it means that soon a lot of trading floors around the world will be closed. Last year, the market came under high volatility
on New Year’s eve. So, it is advisable to remain cautious during
this period. The last week’s session closed in a quite
upbeat mood. The US dollar index returned to the levels
of early December, entering the consolidation stage near the level of 97.70. Traders are pricing in the strong macroeconomic
reports from the US released on Friday. The growth in consumer spending and personal
income, as well as the improvement in the consumer sentiment index, mitigated investors’
fears about the looming recession in the US economy. Nevertheless, traders remain cautious and
avoid risky assets. It seems that market participants are looking
forward to the Christmas holidays and are unwilling to take any risks. As we expected on Friday, the dollar/yen pair
is still trading sideways in the range of 109.20 and 109.60. The pair is most likely to break out of this
range only next year. Meanwhile, investors are evaluating news from
China that confirms the likelihood of a settlement of the trade conflict with the US. Beijing intends to cancel the previously imposed
tariffs on American imported goods starting January 1. Additionally, this weekend, Donald Trump had
a talk with Xi Jinping. According to Trump, both countries are ready
to sign the phase one trade deal. The Australian currency regained ground amid
such news. The AUD/USD pair broke above the level of
0.6900 and at the time of preparation of the material for this video it was approaching
the level of 0.6920. However, technical analysts continue to see
signs of a reversal trend awaiting a downward correction to the support levels at 0.6860
and 0.6830. That’s all for now! We wish you profitable deals! See you on our channel in a couple of hours!