How Long Will Volatility Persist? - Weekly Analysis

The markets have been in an uproar for almost two weeks, after the oil price plunged to new lows and Russia increased its interest rates in an attempt to boost the ruble’s value, which was showing losses against other currencies because Russia relies so heavily on energy revenues. Now that the 2014 is coming to a close, the markets are asking the question – how long will the volatility persist?

There is market-moving data out of the EU on Monday at 15:00, when Eurozone Consumer Sentiment for December is released. This benchmark is mainly expected to decline by minus 10.7, compared to minus 11.6 previously, but with the recent decline in oil prices, things could be looking up for European consumers, who will benefit from lower fuel prices. Also at 15:00, the US releases the Existing Home Sales Change for November, expected to rise by 0.8 percent, compared to 1.5 percent in October.

The Great British pound is in the spotlight at 9.30 on Tuesday, when the UK releases GDP figures for the third quarter. The expectations are that GDP will be at 3.1 percent, compared to the previously reported 3.2 percent on an annual basis. At 13:30, the US releases Durable Goods Orders for November, expected to rise to 1.8 percent versus the previously reported 0.4 percent. Also at 13:30 it’s time for the US to release annualized GDP figures for the third quarter, expected to rise by 4.1 percent, compared to 4.6 percent previously.
Wednesday is Christmas Eve, Thursday is Christmas Day and Friday is Boxing Day, so most markets will be closed, and we take the opportunity to wish you Happy Holidays and a Successful New Trading Year 2015!

Those were the market-moving events for the upcoming week. Thanks for watching Ahead of the Week Report from Banc De Binary’s Trading Room research team. Wishing you successful trading, until next year!