Key Events Traders Should Consider in December 2020


Today marks the end of November, and what a month it was! The world received positive vaccine news three weeks in a row, triggering a rally on the stock market and on the price of oil.

As usual, the first week of the new month brings with it the jobs data in the United States on Friday, but this is not the only important event of the month, as both the ECB and the Fed are scheduled to announce their interest rate decisions.

Auto Draft

NFP Friday

The new month starts with the NFP release on the first Friday, as usual. If we are to interpret the initial jobless claims released through November, the chances are that the NFP will miss the target on Friday. However, until Friday, the Fed’s Chair Powell is scheduled to testify in front of the Senate and his words may bring increased volatility on the USD pairs.

Speaking of the USD, it trades with a weak tone across the board. It lost ground against all G10 currencies, and the slide looks poised to continue. The EURUSD pair has pulled a monster rally recently, trading close to the 1.20 level with little or no corrections during the month of November.

ECB Next Week

All eyes will be on the ECB decision next week. The central bank is expected to ease the monetary policy further, even though it ruled out further interest rate cuts. As such, the market expects an increase in the QE programs as well as improved conditions on the TLTRO terms.

However, despite the ECB expressing concerns about a strong EURUSD rate, the pair is back at 1.20, where the ECB intervened verbally last time. Will it intervene again?

Fed Meeting – The Last Important Event for December

One week after the ECB interest rate decision and press conference, the last important event for the month is scheduled on a Wednesday – the Fed statement and press conference.

The market expects the Fed to ease as well, and the focus would be on the differential between the two central banks’ measures. If the Fed engages in the so-called “operation twist,” it signals that it will further increase the pressure on long-term yields. The market also expects an increase in the QE program in the United States too.

All in all, the month of November was dominated by a weak USD. Expect the next three weeks to be crucial for the USD direction.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Financial Market News

The US Continues to Trump the Euro Economy on Key Metrics, But What Is Next? Is the UK really in a recession? Perhaps 2024 data will be different Weekly Market Wrap With Gary Thomson: US INFLATION, GBP/USD, GOLD, BITCOIN EURGBP continues to be suppressed during February. Will it rise again? Weekly Market Wrap With Gary Thomson: S&P 500, CAD, GBP/USD, AMZN

Latest articles


Brent Crude Oil Makes Sudden Rally As OPEC Countries Mull Low Output

Crude oil is a particularly unusual substance in that it is one of the only consumable commodities that institutions and private individuals widely trade across the spectrum of global markets, and it is a staple component as an energy resource

Forex Analysis

Australian Dollar Weakens amid Inflation News

According to data published today by the Australian Bureau of Statistics, the Consumer Price Index (CPI) value was: actual 3.4%, expected = 3.6%, a month ago = 3.4%, 2 months ago = 4.3%. Data shows Australia's consumer price growth


AAPL Share Price Rises Nearly 1% after Scrapping Electric Vehicle Plans

In 2021, the release of an electric car from Apple was expected in 2025, in 2022, the deadline was shifted to 2026. As it became known yesterday from Bloomberg and WSJ, Apple decided to completely abandon the project. Causes for

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.