On Thursday, the stock indices continued the correction of the previous session and closed in red zone. The Dow Jones decreased by 0.12% (19918.88), S&P 500 slightly decreased by 0.19% (2260.96), Nasdaq has gone down for 0.44% (5447.42). European stocks showed mixed dynamics. The German DAX fell by 0.11% (11456.10), British FTSE 100 rose 0.32% (7063.68).
Today it is expected the number of publications of important macroeconomic data, capable to influence for decisions of traders during the trading session.
At 12:30 MSK the UK is to release GDP for the third quarter.
At 16:30 MSK Canada is to release GDP for October.
At 18:00 MSK the USA is to release Michigan Consumer Sentiment for December.
At 18:00 MSK the USA is to release New Home Sales for November.
At 21:00 MSK the USA is to release U.S. Baker Hughes Oil Rig Count.
Yesterday, statistics came out extremely contradictory. The revised value of U.S. GDP for a third quarter rose from 0.2 to 3.5%. The number of initial claims for unemployment benefits also increased by 19 thousand, which is more than the expected level and the number of orders for durable goods decreased. As a result, the index of wide market S&P 500 opened with a gap down but within the corridor, in which now is undergoing consolidation between levels of 2250-2275. The same thing happened with all other indices, each within its sideways movement, which began after presidential rally a week and a half ago. This behavior is understandable and explainable by the reduction of business activity in the pre-Christmas week. Now we can be glad of the fact that low trading volume allows benchmarks to remain in consolidation in the thin market without any sudden movements in random news. It is likely that after the Christmas market will continue rally with new energy, and we will see new highs. Today is the last pre-holiday day of trading and stock markets will now open only on Tuesday. On different exchanges in the world today is a shortened day, so the London stock exchange today, works until 12:30 GMT.
A similar situation is now happening in the currency market. It is possible to see that US currency is gaining strength for further growth during a rally of Santa Claus before the New Year. Now the pair EUR/USD is consolidating around the level of 1,045. It is possible that the target of the movement for the pair can be in the region of 1.01 - 1,00. And now there are many of the fundamental prerequisites for such a journey, mostly problems in the financial sector of the Old World.
There are no changes in the energy market also and trading volume in two times less than last week. Even positive news about the readiness of Iraq's accession to the agreement on production cuts has not made much impact on the holiday falling volatility. We will keep hope that Friday would not bring any surprises. Important event for today will be the publication of data on the rig count from Baker Hughes.
Sincerely, Global FX chief analyst Sergey Melnikov.