Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand ANZ Activity Outlook for December collapsed by 25.6%, and ANZ Business Confidence came in at -70.2. Forex traders can compare this to the New Zealand ANZ Activity Outlook for November, which plunged by -13.7%, and to ANZ Business Confidence, reported at -57.1.
The Chinese 1-Year Loan Prime Rate for December came in at 3.65%, and the Chinese 5-Year Loan Prime Rate was at 4.30%. Economists predicted a figure of 3.65% and 4.30%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate for November, reported at 3.65%, and the Chinese 5-Year Loan Prime Rate at 4.30%.
The Bank of Japan kept interest rates unchanged at -0.10%, the only G20 central bank to maintain negative interest rates. The move was expected by market participants, but the Japanese central bank surprised markets by widening the yield curve control band to 0.50%, up 25 basis points from 0.25%. It often serves as the first step before raising interest rates, but it also increased its Japanese government bond purchases to dampen any overreaction to the monetary policy tweak.
The German PPI for November is predicted to drop by 2.5% monthly and surge by 30.6% annualized. Forex traders can compare this to the German PPI for October, which plunged by 4.2% monthly and sky-rocketed by 34.5% annualized.
US Housing Starts for November are predicted at 1,400K starts, and Building Permits at 1,485K permits. Forex traders can compare this to US Housing Starts for October, reported at 1,425K starts, and Building Permits at 1,512K permits.
Canadian Retail Sales for October are predicted to rise by 1.5% monthly, and Canadian Core Retail Sales by 1.4% monthly. Forex traders can compare this to Canadian Retail Sales for September, which contracted by 0.5% monthly, and Canadian Core Retail Sales by 0.7% monthly.
Advanced Eurozone Consumer Confidence for December is predicted at -22.0. Forex traders can compare this to the previous Eurozone Consumer Confidence for November, reported at -23.9.
The forecast for silver remains bullish after this precious metal paused its advance for three trading sessions. Traders should expect an increase in volatility with the Tenkan-sen moving higher and the Kijun-sen flat. The Ichimoku Kinko Hyo Cloud suggests more long-term upside as it continues its gradual advance. Traders should monitor the CII following its correction from extreme overbought territory. It may briefly dip below zero, but a higher low and reversal could spark the next phase of its inflation-hedge-driven rally. Can bulls continue to push price action higher and take silver into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for Silver remain inside the or breakout above the 22.550 to 23.350 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 22.950
- Take Profit Zone: 24.850 – 25.600
- Stop Loss Level: 22.300
Should price action for Silver breakdown below 22.550, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 22.300
- Take Profit Zone:20.700 – 21.650
- Stop Loss Level: 22.550
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