The density of this week’s data calendar didn’t disappoint in terms of market moving events. While swings within G10 FX markets weren’t as severe as what many participants have become used to over periods where Covid has been a main concern, intraday volatility was still elevated. Beyond FX volatility, the latest batch of central bank meetings produced plenty for market participants to digest and sparked fierce discussion among analysts. Now, with most of the data releases done for 2021, we have opted for a more condensed Week Ahead. Next week, despite the odd pieces of data set for release, economic events are unlikely to be too market moving with liquidity set to dry up as traders trim positions heading into year-end. Traditionally, portfolio rebalancing has been the predominant driver of price action around this part of the year and has usually favoured the US dollar. However, given the dollar’s inflows amid the arrival of the Omicron variant, year-end flows may actually buck the trend this year.
You can read the Week Ahead in full here:
Simon Harvey, Senior FX Market Analyst
Ima Sammani, FX Market Analyst