USD/JPY may face range-bound conditions ahead of the Federal Reserve interest rate decision as it struggles to test the monthly-high (113.82).
Crude oil prices struggled rising since bottoming in November, highlighting risks as OPEC prepares production cuts. Fed, slowing global growth, stocks falling offer uncertainties.
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.
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