December 9-13. The dollar is powerful, but shocks are possible

2019-12-07

Recently published data on the number of jobs have provided great support to the US currency. The published data not only exceeded the forecast values, but also set certain records. This has led to significant pressure on other currencies. The most affected by this European currency. Even the Canadian dollar has suffered due to weak data on the Canadian labor market. Also contributed to the growth of the dollar wage growth indicators in the United States.
However, in the coming week, the US currency will be at great risk. First of all, this is a possible escalation of the trade war with China, the procedure for impeachment of Trump, another criticism of Trump against the Federal Reserve may also influence.
Given these factors, analysts are inclined to believe that the dollar will still rise on Monday. And here, its further strengthening is under a big question. A downward correction is forecasted in the middle of the week. However, if there is a strong information line, for example, when the trade war with China is tightened, then a bearish trend may even form.
For those who trade currency pairs associated with the British pound, you should pay attention to the Parliamentary elections in the UK on December 12. This can have significant consequences for the pound and trigger abnormal market conditions. Therefore, trading on the pound that day is very risky.