Market Movers Update, 6 December 2021

A week driven by Economic New events – that’s for sure! Lot’s of runs to both directions on a variety of currency pairs following with a massive crash in Crypto markets over the weekend too. What else drove the markets?

Let’s dive in!

What moved the markets?

Bitcoin and the majority of the crypto markets felt a strong push to the downside last Friday evening and into the weekend. Bitcoin now holds steady just below $50K after an almost 20% loss over the weekend.

Equities move into the red on Friday with all major indexes identifying losses with Nasdaq posting a loss of 1.9%. With new Omicron publishings, NFP has helped to push the markets down. Non Farm Payrolls increased by just 210k in November, almost twice as low as the economists’ expectations.

Powell says Fed may consider tapering bond purchases at faster pace. Fed Chair Jerome Powell acknowledged in testimony before Congress that inflationary pressures, while still expected to abate over the next year, had become broad enough and remained elevated for long enough that the central bank may consider accelerating the pace at which it tapers its monthly bond purchases. The market appeared to interpret this development as potentially moving forward the timeline for the Fed to begin increasing short-term interest rates.

EUR/USD – Pair to watch

We’ve been giving you tons of analysis on the Dollar Index allowing us to look into the foreing currency pairs market to make decisions on which direction they are going to target. NFP and an economic news driven week has just passed and it brought us a period of consolidation.

Anyhow, with DXY remaining bullish we are looking for shorts in the Eur Usd this week. With equal highs left at 1.19090 level we have just hit our weekly target a week ago at 1.1200 big figure level.

What’s next? Continuation away from this consolidation to the downside and an attack to next levels as low as 1.100, watch out for it!