Morning Note: Key Levels & Data Driving the Last Monday of 2024

Global markets are watching a series of important events that could significantly influence the behaviour of financial assets. Key economic data and technical levels on the charts highlight potential opportunities and risks for investors.

Below are the key points for this Monday:

Chinese PMI and a possible tariff war with the US

The Chinese PMI will be released today, providing a vital reading on the state of the manufacturing sector of the world's second-largest economy. In recent readings, the indicator has been hovering near the neutral 50 level, which usually signals a sector experiencing slow or even stagnant growth. The market is waiting to see if this reading will bring any surprises that could impact global markets, especially commodities. Considering the second turn of Donald Trump in the presidency and his apparent willingness to protect the US economy, a tariff war between the two economies seems inevitable, and this could cause some serious damage to the Chinese manufacturing sector in the months to come.

USDCAD at key resistance level

The USDCAD pair is approaching a critical resistance, the most important since 2020, located in a region of interest on the weekly chart. The price has accumulated an increase of almost 8% since the end of September, driven by the strengthening of the US dollar, which was caused, in part, by the election of Donald Trump. The big question now is whether the pair will continue its upward trajectory and break above the resistance or make a significant pullback in the coming days. The answer may lie in the upcoming economic data, such as the future steps by the Bank of Canada and FED in the monetary policy.

EURNZD testing strong level of interest

EURNZD is testing an extremely important resistance zone on the weekly chart. The recent upward movement appears to be losing strength, and the first signs of a slowdown are already beginning to emerge. An ignition candle on the daily chart could confirm the entry of a more significant selling force, indicating a possible deeper correction. Investors should pay attention to economic data coming from Europe and New Zealand as they could give hints on what will come next.

EURGBP and the German economy

EURGBP has remained in a consistent downtrend since 2023 and has now reached significant support on the daily chart. The devaluation of the Euro has been influenced by several factors, including the war in Ukraine, which generates uncertainty in the region, and the weakness of German industry, one of the economic pillars of the European economy. The political scenario in Germany, marked by instability, also contributes to the pressure on the Euro. The price reaction in this support zone will be closely watched for possible signs of a reversal or continuation of the trend.

This is the last Monday of 2024, and the markets could be quieter than usual. That’s why investors should pay attention to price movements and adjust risk management according to the current market volatility.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.