Economic Events Outlook, Dec 28 – Trading the Market on Friday

The US dollar slipped against the basket of other currencies, giving up most of the gains, as the US government shutdown thing isn’t getting better and seems to extend until January 2019. Today, we don’t have much on the economic calendar.

Secondly, the Conference Board Consumer Confidence Index fell in December, following a modest decline in November. The Index now holds at 128, down from 136.4 in November which not only dragged the US dollar but also caused selling in the US indices. We have a couple of economic events which are worth trading today. Watch out for the following:

Watchlist – Key Economic Events Today

German Prelim CPI m/m
Destatis is scheduled to release the figure during the European session. As we know, Germany is one of the major business hubs in the Eurozone and its economic events do play a good role in Euro valuation. Economists are expecting a surprise from Prelim CPI as it’s forecast to soar from 0.1% to 0.3% in December.

Spanish Flash CPI y/y
Likewise, the Spanish CPI is due at 8:00 (GMT) and it’s expected to drop from 1.7% to 1.6%. For all the newbies, a higher level of inflation supports the single currency Euro. While a drop in CPI places more pressure on the ECB President Draghi to keep the monetary policy accommodative, making the Euro weaker.

Chicago PMI
The ISM-Chicago, Inc. is due to release the Purchasing Managers’ Index at 14:45 (GMT) with a negative forecast of 61.4 vs. 66.4. After worse than expected consumer confidence, economists are expecting another negative data. Collectively, these place a burden on equities as well as on the US dollar. So, we can expect the dollar to mostly trade bearish until the release of this news.

Besides these economic events, the technical side of the market may offer us some exciting trade ideas. So, stay tuned to FX Leaders for forex trading signals and trade plans for today.

All the best!