Weekly Outlook, Dec. 20 – 24, 2021: Top Economic Events to Watch This Week - Forex News by FX Leaders
Bullish Sentiment for Dollar - US Economic Events Surprises

Weekly Outlook, Dec. 20 – 24, 2021: Top Economic Events to Watch This Week

Posted Sunday, December 19, 2021 by
Arslan Butt • 3 min read

The broad US dollar remained under pressure on Friday and will end this week on a bearish note as investors digest the Bank of England’s (BOE) unexpected interest rate hike and the European Central Bank’s (ECB) shift to a more hawkish attitude. Major central banks revealed plans to dismantle pandemic-era support, resulting in the Bank of England startling markets with a rate hike.

The divergent paths they took highlighted deep uncertainty about how the fast-spreading Omicron coronavirus variant will affect the global economy. Meanwhile, the Fed’s most recent policy decision, issued on Wednesday, was hawkish. The central bank will speed up its asset-tightening program, which will end in March 2022, with three quarter-point rate hikes expected that year. The US Dollar Index, which measures the dollar’s value against a basket of other currencies, fell 0.03 percent to 95.990.

Looking ahead to the coming week, the series of retail sales, the minutes of the Monetary Policy Meeting, and CB Consumer Confidence are likely to generate enough news to keep the markets moving. Apart from that, geopolitical and Omicron coronavirus variant headlines will be actively monitored, as they may significantly determine market risk levels.

The Top Economic Events to Watch This Week

1 – China PBoC Interest Rate Decision – Monday 01:30 GMT

On Monday, December 20th, at 01:30 GMT, the People’s Bank of China will make an interest rate decision. The People’s Bank of China announces its interest rate decision. It is beneficial, or “bullish,” for the CNY if the PBoC is hawkish about the economy’s inflationary prospects and raises interest rates. Similarly, it is negative or bearish if the PBoC has a dovish outlook on the Chinese economy and maintains or lowers the interest rate. The next China PBoC Interest Rate Decision has no consensus, and the previous divergence was non-existent.

Previous release

ACTUAL: 3.85 %     

DEV: —          

CONS: —       

Last released

Mon Nov 22nd, 2021 01:30

2 – Monetary Policy Meeting Minutes – Tuesday – 0:30 GMT

Australian Monetary Policy Meeting Minutes: These minutes, usually published two weeks following the interest rate decision, provide a detailed description of the policy discussion, including differences of opinion. In addition, they keep records of the votes of the committee’s members. As a result, if the RBA is pessimistic about the Australian economy’s inflationary prospects, markets expect a rate hike, which tends to support the AUD currency. Conversely, if the RBA is pessimistic about the Australian economy’s inflationary trajectory, markets expect a rate drop, interpreted as a bearish or negative sentiment for the AUD currency.

3 – CB Consumer Confidence – Wednesday – 15:00 GMT

The Consumer Confidence Index for the United States will be released on Wednesday, December 22nd, at 15:00 GMT. The Conference Board, which measures people’s confidence in economic activity, has issued this information. A high level of consumer confidence indicates economic growth, while a low level indicates an economic slump. In simple terms, a high reading indicates that the USD currency is positive or bullish, while a low value indicates that the USD currency is negative or bullish.

Due to restrictions from the Conference Board, our Economic Calendar does not provide these figures.

Previous release

ACTUAL:–

DEV:–

CONS:–

Last released

Tue November 30th, 2021 15:00 

4- CAD Gross Domestic Product (MoM) – Thursday- 13:30 GMT

On Thursday, December 23rd, at 13:30 GMT, Canada’s Gross Domestic Product (MoM) will be released. Statistics Canada’s Gross Domestic Product measures the total value of all products and services produced in Canada. The GDP is a broad indicator of economic activity and health in Canada. In general, a rising trend is considered favourable for the CAD, while a falling trend is considered bad (or bearish). The next Canadian Gross Domestic Product (MoM) consensus is unknown, as the previous divergence was non-existent.

Previous release

ACTUAL: 0.1 %

DEV: 0.00

CONS:0.1 %

Last released

Tue Nov 30th, 2021 13:30

5 US Core Personal Consumption Expenditures – Price Index (MoM) – Thursday – 13:30 GMT

On Thursday, December 23rd, at 13:30 GMT, the US Core Personal Consumption Expenditures – Price Index (MoM) will be released. The US Bureau of Economic Analysis issued Core Personal Consumption Expenditures, an average amount of money spent by consumers in a month. To capture an accurate expenditure measurement, “core” removes seasonally volatile consumables such as food and energy and is an important inflation indicator. A high reading indicates that the USD is bullish, while a low reading indicates that the USD is bearish. The next United States Core Personal Consumption Expenditures Price Index (MoM) is expected to be 0.4, with the previous deviation being non-existent.

Previous release

ACTUAL: 0.4%

DEV:0.00

CONS: 0.4%

Last release

Wed November 24th, 2021 15:00

6 – Australia Retail Sales – Friday – 00:30 GMT

On Friday, December 24th, at 24:30 GMT, Australia’s retail sales s.a. (MoM) will occur. The Australian Bureau of Statistics’ Retail Sales report is a survey of items sold by retailers based on a sample of retail outlets of various types and sizes and is used to gauge the pace of the Australian economy. It depicts the short- and medium-term performance of the retail sector. Positive economic growth predicts optimistic AUD trends, but a low reading is considered negative or bearish. The following Australia Retail Sales s.a. (MoM) consensus is unknown, and the most recent divergence was 2.79297.

Previous release

ACTUAL: 4.9 %

DEV: 2.79

CONS: 2.5 %

Last released

Fri November 26th, 2021 24:30

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