Last week was a relatively quieter week. The markets are still volatile with many participants looking at the last Fed rate decision of 2022.  Has the moment of pivot finally arrived? We will find out in the coming days.

The US Dollar stopped is move lower as the Fed begins to loom which could spring a hawkish surprise for Christmas? The DXY gained 0.4% to close around 104.90.

Most major currencies traded sideways against the US Dollar. Both Euro and GBP showed very little appetite to break out. Eurozone GDP beat expectations and in the UK, we are waiting for the BoE rate decision where a 50bps rise is expected.

Commodity currencies had a mixed week. The AUD and NZD remained fairly unchanged against the US Dollar as the market still looks to if China is going to re-open or continue to pursue a zero covid policy. JPY lost 1.7%.

Oil the previous week looked to have consolidated at a base but that was quickly dismissed. The continued prospect of economic slowdown is hurting oil prices and with only talk of Chinese reopening gave little support. WTI fell over 10% closing around $71.50.

The week ahead is going to be busy as the monthly interest rate decisions come thick and fast. We have Fed, SNB, ECB, BoE and Norges Bank along with a number of economic releases. The market seems to be priced in a dovish stance so any talk of hawkish could spell trouble for risk.