Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX

FCA License No: 760555

ATFX-search-icon
Client Portal
Start trading
rch

The US Manufacturing PMI Is Expected To Slow Down

The first US non-agricultural data released this year, financial market analysts predict that non-farm employment will increase by 400,000 jobs in December, and the unemployment rate will drop to 4.1%. If the results meet or exceed expectations, the US dollar will likely rally higher. Technically, the US dollar index has fluctuated between 95.5 and 96.9 during the past month. If it breaks through 95.5 in the short term, investors should pay attention to the next support level at  95.1. On the contrary, if the US dollar rallies to the 96 level and rises above the 10 and 20-day moving average lines, the next resistance level is 96.7 or 96.9.

The Expected Slowdown in the Eurozone Inflation

Entering 2022, France will take over the EU’s rotating presidency for half a year, with EU member states and foreign trade relations becoming the main focus. In addition, soaring inflation is an issue that most investors are concerned about. The preliminary December CPI values from Germany and the Eurozone due for release on Thursday and Friday will be closely monitored by investors. The market expects Eurozone inflation to jump to 4.9% year-on-year in November, and it is expected to slow down to 4.7% in December. In addition, there will be a lot more economic data from Germany and the Eurozone this week, including the manufacturing and service PMIs, retail sales, industrial output and PPI. As the new wave of Omicron infections has impacted the Eurozone’s growth prospects, the above data has pushed many European governments to adopt stricter measures, which restrict economic activities. This will affect the Euro’s upside, which is quite limited at the moment. Therefore, investors should pay attention to the short-term upper resistance levels at 1.1410 to 1.1430 levels. If the break higher fails, pay attention to the technical support levels at 1.1300 to 1.1275.

If Oil Prices Rise, They Will Support the Canadian Dollar

OPEC and its allies are set to meet on Tuesday to discuss their monthly oil output quotas. The alliance may stick to its existing plan to increase crude oil production by 400,000 barrels per month. Although Omicron has cast a shadow over the global crude oil demand outlook for 2022, the disruption of air travel and crude oil demand is expected to be temporary. If OPEC+ is optimistic about the demand outlook, oil prices may keep rising, supporting the Canadian dollar. As a result, the USD/CAD is expected to drop to 1.2565 or 1.2500.

Last Updated: 03/01/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

Recent news

Recent news
GBPUSD turns bearish ahead of GDP report

GBPUSD started the week at $1.227, and has fully reversed its bullish trend. The bulls qui...

Recent news
Gold (XAUUSD) prices face rejection at $1807

The precious metal gold faced some rejection after reaching $1,807 on Wednesday, following...

Recent news
US dollar slides downwards amidst July CPI cool down

July's Consumer Price Index (CPI) came out lower. The US dollar dominance in the forex mar...

Recent news
Bitcoin prices jump above $24K as US inflation cools down

The crypto market witnessed a strong bounce yesterday. Bitcoin (BTCUSD) prices led the way...

Recent news
USDCAD holds above $1.2884 as market awaits for US CPI

USDCAD has sustained above its support level of $1.2884 from yesterday. The price is seen ...