Focus U.S. inflation to predict Fed’s decision

Bloomberg reported on Wednesday that China may slow or halt purchase of U.S. Treasury bonds. As the result, greenback fell down to 111.27 yen on Wednesday. I suggest focusing every factor which affects to U.S. dollar in short term such as CPI and Core CPI at 20.30 and invest carefully. These indexes will show the inflation which Fed will consider for the interest rate. In my opinion, short-term confidence of greenback is reducing.
Moreover, U.S. retail sales in December at 20.30 p.m. is predicted only 0.4%. This index may support New York stock market edge higher, if it is higher than expectation. I think retail sales maybe higher than forecast because there are two big celebrations in December: Christmas and New Year. U.S. stock market may keep its strong earning season. While Canadian dollar dropped on Thursday as the Bank of Canada was less likely to raise interest rates next week if the United States withdraws from the North American Free Trade Agreement (NAFTA). In my opinion, USD/CAD may need to edge higher than 1.2900 to become the bullish trend.
There is Head and Shoulders pattern on the Brent graph. If oil supply keeps reducing, oil price will rise up and may reach 100$/barrel. In contrast, I think that the possibility of such rally is low as it will affect the other spheres.

The China-based bitcoin mining giant has set up a new subsidiary in Switzerland. The locale is the home of the "Crypto Valley," an area where a number of cryptocurrency and blockchain startups have headquartered thanks to a permissive regulatory environment. In my opinion, crypto market may extent larger and it may attract more investors or funds in this year.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

Olymp Trade Review