CRYPTOCURRENCIES PRESENT HOLIDAY SEASON TRADING OPPORTUNITIES
With most financial markets closed and traders away for the Christmas holiday period, Asian markets will be the key driver this week, with the release of the Bank of Japan Meeting Minutes and Japanese Industrial Production Figures. The Cryptocurrency market is also like to remain active, as Asian investors continue to speculate on the value of Bitcoin and other popular crypto’s such as Ethereum, Litecoin, Dash and Ripple.
Later in the trading week we see key economic data from the United States and German economies. The U.S economy delivers Consumer Confidence, Housing and Jobs numbers, while Germany releases preliminary CPI inflation figures for the month of December.
Monday 25th December, Bank Of Japan Meeting Minutes
The BOJ releases the Meeting Minutes from their December monetary policy meeting. The Monetary Policy Meeting are a detailed record of the Bank of Japan's policy setting meeting, containing in-depth insights into the economic conditions that influenced the decision on where to set interest rates.
The USDJPY pair remains bullish while trading above the 112.70 technical level. Upside targets above 112.70 are 113.80, 114.10 and 115.20.
Should price decline below the 112.70 level, the USDJPY pair may fall towards the 112.40 and 112 support levels.
Tuesday 26th December, U.S Consumer Confidence
U.S Consumer Confidence for the month of December is expected to come in slightly weaker than the previous month. Consumer Confidence measures the actual level of consumer confidence in overall economic activity. It is a leading indicator as it can predict U.S consumer spending, which plays a major role in the economy. Higher readings point to higher consumer optimism amongst the population.
Wednesday 27th December, Japanese Industrial Production
Japanese Industrial Production is expected to rise sharply for the month of November, beating the previous month's figure. Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
A higher than expected reading should be taken as positive for the Japanese Yen currency, while a lower than expected reading should be taken as bearish for the Japanese Yen currency.
Thursday 28th December, Eurozone ECB Economic Bulletin
The European Central Bank's Economic Bulletin contains the statistical data that policymakers evaluate when setting interest rates. The report also provides detailed analysis of current and future economic conditions from the bank's perspective. The Economic Bulletin is published two weeks after the monetary policy meeting of the Governing Council of the ECB.
The EURUSD remains bullish while trading above the 1.1860 technical level. Upside targets remain 1.1940 and 1.2080.
Should price decline below the 1.1860 level, key support is found at the 1.1813 and 1.1770 levels.
Friday 29th December, German Consumer Price Inflation
The German Consumer Price Index for the month of December is expected to outperform the November reading, with a 0.3 percent rise. The annual CPI number is however expected to tick down slightly, with a 1.5 percent increase seen. Consumer Price Inflation measures the changes in the price of goods and services purchased by consumers. A higher than expected reading should be taken as bullish for the euro currency, while a lower than expected reading should be taken as bearish for the euro.