› Weekly binary options technical forecast December 21-25

Weekly binary options technical forecast December 21-25

EUR/USD
The penultimate trading week of this year has begun and the markets are already visibly feverish. The US Congress was able to agree on a $ 900 billion fiscal stimulus package that will keep millions of Americans receiving unemployment benefits. Even though it won't help the American economy much, the deal was a breath of fresh air after months of internal government debate.
Christmas is approaching, and many countries are torn between giving citizens respite from tough restrictions and tightening them as coronavirus cases rise.
Countries from Germany to Italy and Netherlands have canceled or scaled back planned holiday easing. A new strain of coronavirus has caused Britain to disconnect from the rest of Europe.
All this mixes the cards for investors and prevents the "New Year" rally after global stocks, oil prices and even bitcoin were in a "festive mood". The news that the New Year could bring more restrictions could serve as a tough reminder that the global economy will be dealing with viral aftershocks in 2021.
In any case, the last two weeks the market will be influenced by the financial flows traditional for the end of the year. This year was marked by a weak dollar and a strong stock market. Balancing portfolios could lead to a sell-off in US stocks, putting additional pressure on the US dollar.
This week's economic calendar is not particularly volatile, especially given the short trading week, as many countries celebrate Christmas on Thursday-Friday. Therefore, the peak of volatility should be expected on Wednesday.

GBP/USD
As time goes on, British and European negotiators are at an impasse, and tired investors are again looking at the "unloved" British assets. After voting in the 2016 Brexit referendum, global investors ditched British assets, causing the country's stock market to lose $ 60 billion in outflows.
The pound is one of the most undervalued major currencies on a volume-weighted basis, while stock market risk premiums are above their long-term averages.
With politicians likely to simplify monetary conditions as much as possible, the UK economy could benefit from a nationwide rollout of the covid-19 vaccine in 2021.
Last weekend, Prime Minister Boris Johnson said the new strain was 70% more infectious. In response, the UK government has imposed severe restrictions across the country, including London. Fourth degree quarantine requires people to stay at home (except in cases of urgent need), and also prohibits being in a room with anyone other than family members. Also, the work of all enterprises that do not belong to the category of primary importance is stopped. Fearing the spread of the virus, the world powers have suspended flights to Great Britain.
Against this background, the weak pound sterling looks quite logical. But, given its underestimation, one can consider buying on the fall, counting on growth in the long term. It can't be bad all the time.
However, another shock awaits sterling in the short term. Another Brexit deadline is over, and this increases the chances of a "hard" scenario for Britain to leave the EU, which threatens the currency with new losses. Against this backdrop, uncertainty about Brexit and the epidemiological situation should benefit the US dollar as investors turn to safe haven assets.

OIL
Oil and gas stocks and US drilling are on the rise, but a disastrous year for the energy industry means shale booms could end forever.
The massive cost cuts that have come as a result of the covid-19 pandemic in fuel demand and oil prices have ended an era that has placed the United States among the world's largest producers. The oil shale industry will welcome the New Year, producing 7.44 million barrels per day, which is almost 20% less than at the beginning of 2020.
Oil shale producers have been hit hard by borrowing to expand production and cut costs and production to cut losses. Due to the rapid development of shale wells, larger companies are choosing to cut production.
This year, US oil futures turned negative for the first time as storage tanks filled, rigs hit their lowest level ever, and Exxon Mobil was dropped from the Dow Jones Industrial Average of the largest US companies.
According to law firm Haynes and Boone, the number of bankruptcy filings in the oil industry has grown this year, reaching $ 53.9 billion in the first 11 months, about four times more than in the same period in 2019. The majority of applications came from oil shale companies, and growth could pick up next year, said Craig Grachmann, head of energy finance practice.
This year has been very difficult for the oil industry and for commodity prices, but it is not over yet. And the reasons for unrest are only increasing. Be careful, if the new covid-19 strain turns out to be as dangerous as it is said to be, the oil market could still shake up.


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