Weekly Fundamental Forecast: Fed, BoE and BoE Rate Decisions in the Last Full Week of the Year
The UK government has yet again failed to convince anyone that its current Brexit stance is workable and that continues to paint a gloomy picture for Sterling
The ECB used its December policy meeting to reduce its GDP and inflation forecasts and note that downside risks were increasing. Amid an otherwise quieter economic calendar this week, the ECB’s commentary will resonate as political risks in the Eurozone continue to increase.
The US Dollar may trade broadly higher against its major currency counterparts as the Fed policy announcement checks the slide in 2019 rate hike bets.
Gold is on a bullish breakout since its 6-month decline that began in April, but upcoming event risk may dampen XAUUSD performance over the short term.
The Federal Reserve’s decision on Wednesday will likely dominate US equities this week while Europe has a plethora of events on the docket. As always, trade wars loom.
See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.
See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.
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