Forex Trading Outlook: December 21-28, 2015

It’s looking like another typical “Jingle Bell” slow week ahead.

The week ahead of the Christmas weekend is traditionally one of the most illiquid and slowest trading weeks of the years.
We don’t expect it to be any different this year as most institutional and bank traders wind down their year. Additionally, the much expected anticipation of the Fed rate hike has now come and gone as the markets settle down and digest the news.

It is no secret that ForexSignal has held the view for most of 2015 of an ongoing strong dollar. It is very difficult to see this view changing, taking into account the Fed rate increase coupled with falling commodity prices and the struggle to gain traction in the overseas market. Other than some real earth shattering news, I just can’t see any reason for the markets to really go anywhere but in the direction of the mighty Greenback.

As usual at this time of year, we urge our clients to trade with extreme caution as price spreads will definitely widen due to lack of liquidity, and this may result in increased slippage as the market looks for participants on the other side of a trade. This in particular for the non-major pairs and crosses.

A Note From The ForexSignal Trading Desk

Ahead of the anticipated very slow week ahead, we don’t anticipate much Forex activity, however our ForexSignal Trading Team will still be scanning and looking out for any trade opportunities utilizing very strict criteria taking into account the lack of market liquidity. We still be sending out trade signal alerts and Trade Copier trades until December 23rd and again starting on Monday December 28th.

Wishing all our clients a happy and safe week.

Ben lewis
Chief – ForexSignal Trading Desk