It will be a low volume day as people around the world prepare for Christmas. For this reason, many markets will remain closed today and tomorrow. In some countries like the United States, United Kingdom and Canada, the markets will open for half a day. However, even with the low volumes, the prices of securities will continue to move up and down.
Christmas eve comes as the government shutdown continues in the United States. The shut down came after the senate failed to pass a funding proposal. They refused to do so because the US president insisted on having $5 billion for the wall in the budget and the democrats are not incentivized to act as a new term nears. Over the weekend, the president insisted that he was likely to continue shutting down the government until he gets his wall. The shutdown will likely not have major implications in the markets but the happenings in Washington will likely impact investor and consumer confidence.
The price of crude oil started the week on a high note with Brent and WTI gaining by 1% and 0.85% respectively. This upward trend was not attributed to any major news. The reason could be driven by investors belief that the low prices could hamper production from the United States. It could also be because of technical traders and algorithms who believe that the price is oversold.
EUR/USD
The EUR/USD pair moved higher in early trading as investors looked at the US government shutdown. It moved from Friday’s close of 1.1355 to a high of 1.1390. On the hourly chart, the pair’s current price is along the 14-day EMA but lower than the 28-day EMA. Today, with no major economic data expected, investors will focus on the government shutdown in the United States. A deal between democrats and republicans will likely lead the pair lower.
GBP/USD
The GBP/USD pair rose slightly today from a low of 1.2615 to a high of 1.2680. On the hourly chart however, the price remains within a narrow range of between 1.2600 and 1.2700. This current price of 1.2670 is slightly above the 14-day and 28-day EMA. Like with the EUR/USD pair, this price will likely depend on the US government shutdown.
XTI/USD
The XTI/USD pair moved to a high of 46.22. Still, the current price is close to the 15-month low. On the hourly chart, the price is close to the 14-day and 28-day EMA. The RSI is at 50 and moving up. In the short-term, the price could continue moving up. However, this could be a false breakout, which means that the price could resume the downward trend.
