Positive and negative signals | 22 Desember 2021

22 Desember 2021, GBP/USD

Positive and negative signals

GBPUSD trading plan:

U.S. Treasury yields were higher as traders focused on optimistic economic conditions despite the rapidly spreading Omicron variant of the coronavirus, and discounted inflation fears. The U.S. notes were still popular with worldwide investors at a time when many other nations' debt pays little or no interest. The demand also seemed to show bidders little concerned with inflation at least in the long run. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 4 basis points at 0.67%. This is a positive signal for the dollar. American Petroleum Institute data showed U.S. crude stocks fell 3.7 million barrels for the week ended Dec. 17. On the supply side, investors are looking ahead to a meeting of the OPEC+ producers’ group - comprising the Organization of the Petroleum Exporting Countries and allies including Russia - set for Jan. 4. With the growing production issues in Russia and various others in the Atlantic Basin, it is likely that Middle Eastern producers could push for a continuation of monthly quota increases. This is a negative signal for the dollar.

Investment idea: range 1.3230-1.3310.

David Johnson
Analyst of «FreshForex» company
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