Weeks ago, Omicron, OPEC +, and NFP launch the new year

 

happy New Year! When we change the calendars from 2021 to 2022, many similar themes will continue, including rising inflation and coronavirus. Although we have some inflation data this week (several CPI releases and US average hourly earnings), the focus is on the virus. Omicron is on the verge of becoming a major issue in many lands. How will this affect future markets? This is a question that must be answered when OPEC members decide on Tuesday whether to increase oil supplies. In addition, the beginning of the new month means Friday payroll for the United States and Canada. Traders see Omicron as influencing the data.

Omicron

Record numbers of Corona virus victims continue to flow around the world on a daily basis, mainly by Omicron. The United States broke the record last week with 484,377 new cases. The United Kingdom and many European countries are also recording new issues every day. What do the markets think? Well, the S&P 500 reached a new high, again, last week. Do traders understand that this is something people should live with? Or is the purchase due to “window dressing” to make the money look better? In addition, high inflation is unlikely to disappear anytime soon, and new issues may increase inflation. If most people are sick, even if they are a little sick, they should stay home from work for at least a few days. Can factory workers, Longshorman, truck drivers, and supplies and products be available on time? If left unchecked for the next few months, the Omicron variant could cause significant inflation.

 

OPEC +

OPEC + will meet on Tuesday this week. The committee will continue to increase its supply of oil by 400,000 BPD or stop due to lack of demand due to differences in microns. Expected OPEC + production increases. The risk of coronary heart disease is declining, and interest rates are rising throughout the year. In addition, the regions that released the oil reserves in December should start resuming soon to avoid high prices. These include the United States, Britain, China, South Korea, and others. (Prices are rising again towards the meeting.) Therefore, demand is expected to increase for the outcome. Wait for OPEC to stick to the script.

Economic data

Although there will be no major central bank meetings since the new year, the FOMC will release minutes from the December meeting. Does this change the way traders view the falcon Federal Reserve? As mentioned, there is some inflation data this week, which includes CPI from Turkey, Germany and the European Union. There will also be manufacturing and employment information this week on inflation. These include Global Manufacturing and Service PMI and US average hourly earnings. See job postings for reports from Germany, Canada and the US. Other important economic data are as follows:

Monday

  • European and US Manufacturing PMI Final (DEC)
  • Turkey High Inflation (DEC)
  • US construction cost (NOV)

Tuesday

  • OPEC meeting
  • “Rest of the World” Production PMI (DEC)
  • China Extract Kaxiin Manufacturing PMI (DEC)
  • Germany Extra Retail (NOV)
  • Germany Unemployment Change (DEC)
  • UK Public BOE Consumer Credit (NOV)
  • UK loan mortgage loan (NOV)
  • Canada Free PPI (NOV)
  • US pick ISM Manufacturing PMI (DEC)

Wednesday

  • European and US Services PMI Final (DEC)
  • Australia: RBA chart package
  • Japan Demand Consumer Confidence (DEC)
  • US ADP Job Change (DEC)
  • Canada Free New Housing Price (NOV)
  • Canada Building Construction Permits (NOV)
  • US: FOMC Minutes
  • Raw materials

Thursday

  • “The rest of the world” services PMI final (DEC)
  • China Green Kaxiin Services PMI (DEC)
  • Germany Extra Factory Orders (NOV)
  • European Union Construction PMI (DEC)
  • European Union PPPI (NOV)
  • Germany Pass CPI Prel (DEC)
  • Canada Free Trade Balance (NOV)
  • US trade trade balance (NOV)
  • United States ISM Non-Manufacturing PMI (DEC)
  • United States Factory Orders (NOV)

Friday

  • Japan Extra Housing Expenditure (NOV)
  • Japan Tokyo Tokyo CPI (DAC)
  • German trade trade balance (NOV)
  • UK False Halifax House Price Index (December)
  • UK Light Construction PMI (DEC)
  • Ah Pop CPI Flash (DEC)
  • European Union Retail Retail (NOV)
  • European Economic Area (DDEC)
  • Mexico Destroyed CPI (DEC)
  • Canada Intern Recruitment Change (DEC)
  • US Dollar Out of Pay (DEC)
  • Canada Ivy PMI sa (DEC)

Weekly chart daily S&P 500

Source: Tradingview, Stone X

No matter how many times the S&P 500 tried to lower last year, buyers bought the baptism. Traders were expecting lower prices to continue the trend of March 2020 as the Big Cap Benchmark index rose throughout the year, but it did not happen! Will this trend change in 2020, especially if inflation continues to enter the market? The S&P 500 set new highs, again, last week. (Future contract shown, because it contains one-night business information). Opposition is at a 127.2% Fibonacci extension from December 17 to December 20, near 4804. The time limit mentioned earlier is around 4881. Note, however, that the RSI varies with the price, the indicator may be ready to pull. Support rebounded around 4743.25, the upward sloping trend to 4575 and the lowest on December 20 at 4520.25.

Omicron will be on everyone’s mind this week as merchants crush the fast-paced, but slow, volatile. Will the virus bring new fears to the market, or will traders be wary of the wind and continue with the risk factor? OPEC + will also meet this week as WTI crude oil prices close to $ 77. Increase the result again?

Happy New Year weekend and please always remember to bathe!

#forex_news

Leave a Comment