- December 17, 2018
- Posted by: Joey Benedid
- Category: Market News
While ranges in FX have been very tight in most currencies it may be the calm before the storm as there are a great deal of events occurring this week in what is historically one of the most illiquid trading periods of the year. They are:
- Brexit debate in parliament (Monday, Tuesday)
- FOMC Rate Statement (Wednesday)
- BOJ Monetary Policy & Rate Statement (Thursday)
- BOE Monetary Policy Summary & Rate Decision (Thursday)
- U.S. Government shutdown deadline (Friday)
The possible scenarios are too numerous & speculative to discuss so suffice it to say volatility is likely.
It is also a big week for Canada with Manufacturing sales (Dec 18th), CPI (Dec 19th), Wholesale trade (Dec 20th), retail sales and GDP (Dec 21st) and The Business Outlook Survey is scheduled to be published on Dec 21. This will lay the groundwork for the BoC’s rate path into the first quarter of 2019. It is difficult to gauge how these releases will pan out in the context of everything else that is being released this week as global trade war tensions are also the preeminent factor currently dictating market sentiment. Short term levels of note will be support below at 1.3315-20 and resistance above at 1.3425-40.