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Friday’s trade saw USD/DKK within the range of 6.0451-6.0873. The pair closed at 6.0841, gaining 0.46% on a daily basis and 1.85% for the whole week.

Fundamentals

United States

Existing Home Sales

The index of existing home sales in the United States probably gained 0.8% to a level of 5.25 million in November compared to a month ago. In October compared to September existing home sales rose 1.5% to 5.26 million, or the highest level since September 2013. The sample of data encompasses condos, co-ops and single-family houses.

Statistical data on existing home sales is often used along with statistical figures regarding the new home sales and pending home sales, with the major objective being to draw a conclusion how nation’s housing sector is performing, regardless of interest rates. The most active house-purchasing period in the United States is usually between the months of March through June. Therefore, in case statistical data revealed a sudden drop in the number of homes sold rather than an improvement during this period, this would be considered as a signal of weakness in the country’s housing market.

The report on existing home sales usually does not cause a real direct impact on US economy. Actually, this effect appears to be minimal, due to the fact that nothing is produced with the mere sale of an existing home. In terms of economic activity, the sale of an existing house may be related only to interior design and purchases of new furniture.

The reason markets pay a certain attention to existing home sales report is that it reveals much about the general course of nation’s economy. A major part of the population considers a house as a sign of wealth and, unlike the money wealth, which is concentrated in certain regions of the country and held by the wealthiest representatives of the population, ”housing wealth” is evenly distributed across the country.

In case the index increased more than anticipated, this would have a bullish effect on the US dollar. The National Association of Realtors (NAR) is to release the official figure at 15:00 GMT on Monday.

Fed monetary policy statement

Demand for higher-yielding assets was boosted on Thursday and Friday, as in its policy statement, released Wednesday, the Federal Reserve Bank replaced the pledge to maintain the target lending rate close to zero for a considerable period of time with a promise not to rush to normalize its monetary policy stance.

According to the Feds statement: ”Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy. The Committee sees this guidance as consistent with its previous statement that it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time following the end of its asset purchase program in October, especially if projected inflation continues to run below the Committees 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored. However, if incoming information indicates faster progress toward the Committees employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated.”

Denmark

Consumer Confidence

Confidence among consumers in Denmark probably continued to worsen in December, with the respective gauge slipping to 5.3 from 6.3 in November. If so, this would be the lowest level of confidence since March, when the index was reported at 5.0. The gauge is based on a monthly survey, encompassing a sample of about 1 500 individuals, drawn from a population of persons aged between 16 and 74 and residing in Denmark. Lower consumer confidence implies a lesser willingness to spend, including large-ticket purchases, while lower consumer spending suggests overall growth slowdown. Therefore, lower-than-projected index readings would have a certain bearish effect on the local krone. Statistics Denmark is expected to announce the results from the survey at 8:00 GMT on Monday.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 6.0722. In case USD/DKK manages to breach the first resistance level at 6.0992, it will probably continue up to test 6.1144. In case the second key resistance is broken, the pair will probably attempt to advance to 6.1414.

If USD/DKK manages to breach the first key support at 6.0570, it will probably continue to slide and test 6.0300. With this second key support broken, the movement to the downside will probably continue to 6.0148.

The mid-Pivot levels for Monday are as follows: M1 – 6.0224, M2 – 6.0435, M3 – 6.0646, M4 – 6.0857, M5 – 6.1068, M6 – 6.1279.

In weekly terms, the central pivot point is at 6.0302. The three key resistance levels are as follows: R1 – 6.1412, R2 – 6.1983, R3 – 6.3093. The three key support levels are: S1 – 5.9731, S2 – 5.8621, S3 – 5.8050.

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