I want to say that the reaction to the US producer prices data last week was in itself somewhat telling, that market players are just not willing to firm up any convictions until we get this week settled. The dollar gained but gave it all back as the tension continues to build ahead of the key risk events coming up in the next few days.
We'll kick things off with the US consumer price inflation report tomorrow, before turning the focus to the central bank bonanza - in which we will get the Fed on Wednesday, and then the SNB, BOE, and ECB on Thursday. In the midst of all of that, we will also get Australia and UK labour market reports, UK inflation data, US retail sales, and preliminary PMI data for December.
It's all about the economic calendar and event risks, so headlines are going to be paramount this week.
The BOJ will wrap things up on Tuesday next week but in all likelihood, this could very well be the last full-fledged trading week of the year before liquidity conditions begin to wind down.
So, brace yourselves. Get the popcorn out. It's going to be a thrilling and wild ride before the coming weekend rolls along.
