Brexit Deadline Set for January 2021

On Wednesday, the EU announced that they don’t want the transition period after Brexit to exceed the last days of 2020. This date coincidently matches the date that the EU will end its seven-year budget period. This confirmation comes after union negotiators agreed to the set date.

British PM Theresa May had earlier requested a transition period that will last roughly two years. While addressing reporters, EU chief negotiator Michel Barnier stated that 2020 was the logical date as there would be no issues arising in their next 2021-2027 budget period.

U.S. Home Sales Records 11-year High.

The data released revealed that the U.S home sales went up more than what analysts had expected for November, in the process, achieving an 11-year high. The National Association of Realtors in their statement on Wednesday revealed that the existing home sales went up by 5.6% in November as recovery continues after Hurricanes Harvey and Irma.

China Looks to Increase Reform to Achieve Steady Growth In 2018

The Chinese government revealed on Wednesday that they would deepen their structural reforms and remove every risk in their financial system. Officials also revealed that they plan to maintain a steady economic growth next year.

The country witnessed an economic growth that is better than expected as it intensified efforts to cut debt. Investors followed the annual economic conference keenly as they look for hints regarding policy priorities and economic targets for the following year.

U.S. Single-Family Housing Begins, Achieves Record 10-Year High

U.S. single-family homebuilding and permits went up in November, in the process recording a 10-year high. The result indicated a hopeful sign for the housing sector that has been negatively affected by supply constraints.

So far this year, builders have struggled to meet the high demand for housing. This is as a result of the labor market currently near full employment. Reports indicated that both land and skilled labor are now short in supply while the demand and subsequently, the price of lumbers have increased.

Late on Tuesday, the Commerce Department stated that the single-family home building has increased by 5.3% in November, currently standing at a rate of 930,000 units, the highest level achieved since September 2007.

Single-family home permits, on the other hand, surged by 1.4%, currently at the rate of 862,000 units.

World Bank Raises China 2017 Growth Forecast, Maintains 2018 Outlook

On Tuesday, the World Bank increased China’s economic growth forecast for the year to 6.8%, a 0.1% increase from its earlier projection in October. This surge was supported by the country’s growth in the area of personal consumption and foreign trade.

World Bank though didn’t alter 2018 and 2019 GDP forecast for the world’s second largest economy, with the figures still standing at 6.4% and 6.3% respectively. The figures didn’t improve due to their tight monetary policies.

Forex Market to Witness Less Activity Over the Next Two Weeks.

There is bound to be fewer events over the next two weeks as the year comes to an end. A look at the economic calendar will reveal only a few events that are significant. The major event being the U.S new home sales that will be revealed on Friday 22nd. Other activities are slated in the coming days, but they aren’t going to be of that much interest to investors and traders. This will result in forex activities cooling off for a while until the first week of January.