The upcoming week, 30.12.2024 – 05.01.2025, will be a transitional period marking the end of 2024 and the beginning of 2025. During the days from December 30 to January 1, trading activity is expected to be quite low as people around the world celebrate the New Year. Banks will be closed during this time, starting with those in the Pacific Rim countries. Trading will resume on January 2. However, trading volumes will likely pick up after January 5.
Nevertheless, this does not mean the market will not experience sharp movements in the early days of the new year. On the contrary, it is very often in the first days of January that new trends emerge. It may also happen again this time.
Next week, market participants will focus on the publication of the US and Chinese macro statistics.
Note: During the coming week, new events may be added to the calendar, and/or some scheduled events may be canceled. GMT time
The article covers the following subjects:
Major Takeaways
- Monday: no important macro statistics is scheduled.
- Tuesday: Chinese manufacturing PMI by the China Federation of Logistics & Purchasing. The world celebrates the New Year.
- Wednesday: banks and stock exchanges are closed. The world is welcoming the New Year. US manufacturing PMI by ISM.
- Thursday: Caixin China general manufacturing PMI.
- Friday: no important macro statistics is scheduled.
- The key event of the week: US manufacturing PMI by ISM and New Year’s Eve.
Monday, December 30
There are no important macro statistics scheduled to be released. Forex trading volumes will be minimal.
Tuesday, December 31
The world will be celebrating the New Year. Banks will be closed. European and Asian stock exchanges will remain open approximately until noon. Trading volumes will be minimal.
01:30 – CNY: China’s Manufacturing and Services PMI by the China Federation of Logistics and Purchasing (CFLP)
This indicator is an essential gauge of the overall Chinese economy. An indicator reading above 50 is positive for the yuan, while a value below 50 is negative for the currency.
Previous values: 50.3, 50.1, 49.8, 49.1, 49.4, 49.5, 50.4, 50.8, 49.2, 49.0, 49.5, 50.2, 49.3, 49.0, 48.8, 49.2, 51.9, 52.6, 50.1 in January. The relative rise in the index above 50 strengthens the yuan. Data above 50 indicates increased economic activity, positively affecting the national currency. Conversely, if the index value is below 50, the yuan will face pressure and probably decline.
Likewise, the services sector PMI assesses the state of the services sector in the Chinese economy. An indicator result above 50 is seen as positive for the yuan. Previous values: 50,2, 50.0, 50.3, 50.2, 50.5, 51.2, 53.0, 50.7, 50.4, 50.6, 51.7, 51.5, 53.2, 54.5, 56.4, 58.2, 56.3, 54.4 in January. Despite the relative decline, the indicator is still above the 50 value, likely influencing the yuan positively. Conversely, the indicator below 50 suggests that the yuan will face pressure and probably decline.
Wednesday, January 1
Banks and all the world’s major stock exchanges will be closed. The world is celebrating the New Year.
15:00 – USD: US ISM Manufacturing Purchasing Managers’ Index
The US PMI published by the Institute for Supply Management (ISM) is an important measure of the US economy. When the index surpasses 50, it bolsters the US dollar, whereas readings below 50 have a detrimental effect on the greenback.
Previous values: 48.4, 46.5, 47.2, 47.2, 46.8, 48.5, 48.7, 49.2, 50.3, 47.8, 49.1 in January 2024, 47.4 in December, 46.7 in November, 46.7 in October, 49.0 in September, 47.6 in August, 46.4 in July, 46.0 in June, 46.9 in May, 47.1 in April, 46.3 in March, 47.7 in February, 47.4 in January 2023.
The index has been below the 50 level for several months now, indicating a slowdown in this sector of the US economy. The growth of index values supports the US dollar. Conversely, if the index reading falls below the forecasted values or below 50, the greenback may sharply depreciate in the short term.
Thursday, January 2
01:45 – CNY: Caixin China General Manufacturing PMI
The Caixin Purchasing Managers’ Index (PMI) is a leading indicator of China’s manufacturing sector. As the world’s second-largest economy, China’s release of significant macroeconomic data may strongly influence the financial market.
Previous values: 51.5, 50.3, 49.3, 50.4, 49.8, 51.8, 51.7, 51.4, 51.1, 50.9, 50.8, 50.8, 50.8, 50.7, 49.5, 50.6, 51.0, 49.2, 50.5, 50.9, 49.5, 50.0, 51.6, 49.2 in January 2023.
A decline in the indicator value and reading below 50 may negatively affect the renminbi, as well as commodity currencies such as the New Zealand and Australian dollar. Data that exceeds forecasted or previous values will have a positive impact on these currencies.
Friday, January 3
There are no important macro statistics scheduled to be released.
Price chart of EURUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
{{value}} ( {{count}} {{title}} )
This post is originally published on LITEFINANCE.
