GBPUSD volatility in advance of Christmas holidays

Market Leader informed

Last week the FOMC announced that the economic improvement won’t prevent it from pouring $600 into the market of bonds until the unemployment is high. Will it help the US economy?

Let’s look at this week’s news releases:

Dec 21st
9:30 GBP - Public Sector Net Borrowing

Dec 22nd
9:30 GBP - Current Account
9:30 GBP - MPC Meeting Minutes
15:00 USD - Existing Home Sales

Dec 23rd
13:30 USD - Core Durable Goods Orders
13:30 USD - Unemployment Claims
15:00 USD - New Home Sales

 

UK Public Sector Net Borrowing is an indicator directly connected with money flows. That is why it should be paid special attention to. The growth of the index value weakens the British Pound and vice versa.

Current Account (UK) is an indicator of the country’sbalance of payments. If the change is negative investors may lose interest in the British currency.

The Bank of England’s policy remains unchanged after all the MPC members failed to agree on the interest rate, with the majority voting for maintaining the interest rate. Despite the unchanged policy the British economy has improved its indicators since October leak, which may influence the results of the next meeting.

This week’s market catalyst is expected to be the following news releases on the US economy: Core Durable Goods Orders, Unemployment Claims and New Home Sales. As the housing market describes the economic situation and the people’s confidence in the future, the indexes should be paid special attention to.

 

Provided by the Department of Options, Masterforex-V Academy

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