While the new Omicron Covid variant will dominate the market theme for this week, there are a variety of key economic news announcements also scheduled.

The Canadian dollar (CAD) will be in the spotlight with GDP data released on Tuesday and employment figures on Friday. The CAD was one of the best-performing currencies before last week’s sell-off in commodity currencies and the collapse in oil prices.

Most of the market will be focused on key US announcements this week which includes ISM Manufacturing PMI data on Wednesday and Non-Farm Payroll figures on Friday. The US dollar has been a top performer in recent weeks as a hike in interest rates are being priced in sooner rather than late

Global indices suffered their biggest one-day drops this year as fears surrounding the new Omicron Covid variant saw investors run to the exits. This means safe havens are likely to be in focus this week as well.

You can learn more about some of the global themes affecting the markets in this selection of new education articles.

• What is the DAX40 Index and Why Trade It? 
• What is the Dow Jones Index – DJI 30 Investing Strategies 
• Trader’s Room Tutorial   

Weekly Forex Calendar 

Source: Forex Calendar from the MetaTrader 5 trading platform provided by Admirals.  

Trader’s Radar – US Non-Farm Payroll (NFP)

On Friday 3 December at 1.30 pm GMT, the Bureau of Labor Statistics releases its latest report on the unemployment rate, average hourly earnings and non-farm employment change. Data regarding employment is usually a big deal for a currency as it determines the health of the economy.

The US jobs report has been mixed this year, even though other data is showing signs of strong economic growth. However, last month’s huge NFP beat led to an increase in expectations that the Fed will increase interest rates sooner as the jobs market starts to heal.

This led to a surge in the US dollar, with commodity currencies bearing the brunt of the US dollar strength and general risk-off sentiment from the Omicron Covid variant.

Source: Admirals MetaTrader 5, USDX, Monthly – Data range: from 1 Jul 2013 to 27 Nov 2021, performed on 27 Nov 2021 at 7:00 pm GMT. Please note: Past performance is not a reliable indicator of future results.  

The US dollar index has been held in a long-term trading range since 2014. Earlier in the year, the price bounced from the lower support level and has been rising ever since. It has also broken through key resistance lines and is trading at the same level before the pandemic started.

While the move higher in the US dollar is arguably stretched, the long-term uptrend is intact. While the euro and British pound have also been moving lower against the US dollar, the commodity currencies will be ones to watch if the US dollar strength continues (AUD, CAD, NZD, ZAR).

Corporate Trading Updates and Stock Indices

Global stock market indices were hammered last week after a relatively easy ride higher over the past few months. Fears surrounding the spread of the Omicron Covid variant rocked all risk assets around the world.

A correction in global stock indices has been long overdue. This may just be the pullback that longer-term investors may be looking for. The timing is interesting as well due to the typical year-end seasonal rally in equities.

Source: Admirals MetaTrader 5, SP500, Daily – Data range: from 23 Feb 2021 to 27 Nov 2021, performed on 27 Nov 2021 at 6:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Past five-year performance of the S&P 500: 2020 = +16.17%, 2019 = +29.09%, 2018 = -5.96%, 2017 = +19.08%, 2016 = +8.80 

In last week’s weekly market outlook we highlighted the failure of buyers breaking above the 4710.00 price level and that a move lower could see the price heading towards the 50-day moving average (red line).

Now that this has played out, the 100-day exponential moving average (green line) looks interesting and could be a target level of short-sellers or an entry zone for dip buyers on the longer-term timeframes.

Did you know that you can use the Trading Central Technical Ideas Lookup indicator to find actionable trading ideas on this index and thousands of other instruments across Forex, stocks, indices, commodities and more? 

You can get this indicator completely FREE in the Premium Analytics section once you open an account…

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:

• This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
• Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
• With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest.
• The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
• Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
• Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
• Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.