Three markets to watch next week

12:10 PM December 31, 2020
 

First week of the New Year is always interesting as traders make new strategic allocations. It will be full of economic releases but investors should also look beyond them for directions. Watch these 3 markets to see the tendencies at the start of 2021. 

EURUSD

The currency pair has been rallying amid risk-on sentiment which led to the largest sell-off of the USD in nearly a decade – a situation that may at some point lead to a correction. Will the US labour data be a trigger here? We’ll have the ADP report on Wednesday and NFP on Friday. The reversal of the current trend may be challenging as there is no clear resistance before the 1.25 level.

US100

US100 is the biggest winner of 2020. The declines in March were relatively shallow, and the subsequent rally was driven by two issues – tech companies benefited from the pandemic and central banks began pursuing an enormously expansionary monetary policy that sparked a boom among retail investors. Will this trend continue? Or will the tech sector be affected by the regulations that Joe Biden mentioned during his presidential campaign?

DE30

DE30 took the entire year 2020 to climb back to its historic highs. Are current valuations justified? Will the economy follow in the footsteps of the markets? We will know the answer to the first question this week, as data on industrial orders (Thursday) and industrial production (Friday) will be published in Germany.

Get started for free

Getting started is easy, it takes only few minutes to setup.

iPhone_black.cd7b8a9f