Weekly Forex Forecast: 22nd to 27th December

By Orbex Last updated Oct 31, 2021

Weekly Forex Forecast: 22nd to 27th December

With the major risk events done with last week; the FOMC, markets will now be looking to slow down on the trading volumes ahead of the holiday season. The US Dollar enters a new week of trading on continued bullish rally against weaker Euro and the British Sterling.

The economic calendar for the week ahead is largely quiet with the exception of the data releases on the 23^rd December ahead of the holidays starting 24^th which is likely to lead to lower volumes for the remainder of the week.

Fundamentals for the Week 22 – 27 December

Date	Event	Estimates
22 December	BoJ Monthly Report	–
	Eurozone Consumer confidence	-11
	US Existing home sales	5.21Mn
	Kiwi Trade Balance	-550Mn
23 December	Japan Bank Holiday	–
	France consumer spending m/m	0.2%
	Italy retail sales m/m	0.2%
	UK Current account	-21.1Bn
	UK Final GDP q/q	0.7%
	Canada GDP m/m	0.1%
	US Core durable goods orders m/m	1.1%
	US Final GDP q/q	4.3%
	UoM consumer sentiment	93.5
	UoM inflation expectations	2.9%
	US New home sales m/m	461
	Core PCE price index m/m	0.1%
24 December	Swiss KOF Economic barometer	99.2
	German bank holiday	–
25 December	BoJ monetary policy minutes	–
	BoJ Gov. Kuroda speech	–
26 December	Japan Household spending y/y	-3.5%
	Tokyo Core CPI y/y	2.3%
	Japan National core CPI y/y	2.7%
	Japan preliminary industrial production	1%

Currencies/Events to Watch this Week

Canada will be releasing its monthly GDP numbers which is expected to show the Canadian economy to slow down to 0.1% on the monthly basis.
The final revision to the UK’s 3^rd GDP is expected on 23^rd December but consensus calls for an unchanged reading at 0.7%.
The US will be releasing a lot of data before the holidays which includes revised GDP, Core PCE and durable goods orders along with the UoM consumer sentiment and inflation expectations.
With the data dump on the 23^rd, the markets could see the final day of volatility before settling down for the calm holiday season for the remainder of the week.

FX Majors Weekly Pivots

	R3	R2	R1	Pivot	S1	S2	S3
EURUSD	1.2809	1.2686	1.2457	1.2339	1.2109	1.1987	1.1761
GBPUSD	1.6002	1.5894	1.5760	1.5652	1.5518	1.5407	1.5273
USDCAD	1.1795	1.1735	1.1671	1.1609	1.1548	1.1484	1.1424
USDJPY	124.905	122.217	120.823	118.185	116.792	114.154	112.71
USDCHF	1.0231	1.0037	0.9937	0.9743	0.9640	0.9449	0.9346