The decision of the last Fed meeting did not provide significant support to the U.S. dollar exchange rate. Commerzbank's economists expect the dollar to struggle in the next few weeks.

Joachim Nagel, Bundesbank President, recently spoke on a time period inflation battling might take. In his recent statement, he asked the public of Germany to be patient, as fighting inflation may take time.

The dollar depreciated against the euro because data on the optimistic sentiment in German business circles had contributed to EU currency.

Europe will face a difficult task to replenish gas stocks next year compared to this winter. It will also be harder for governments weakened by high energy prices to bear the cost of purchasing gas on the open market.

Luis de Guindos, vice-president of the European Central Bank (ECB), said that the growth of borrowing costs is going to be similar to the rate of interest rate hikes. This is due to the regulator's efforts to tame soaring prices in the Eurozone.

On Sunday, spot power price surged in Japan due to increased demand for heating. More and more energy is required as the northeast part of the country is hit by heavy snow.

Economists at Commerzbank expect that gold prices may drop to $1,750 at the beginning of 2023. Although, the yellow metal is likely to reach $1,850 by the year-end.

In order to combat high inflation in the economy, the Fed will most likely be forced to raise the key interest rate above 5.1%, and then hold it at that level until 2024.

According to a statement made on Saturday by Economy Minister of Italy Giancarlo Giorgetti, it’s highly unlikely that energy prices would go down by early spring next year.

Federal Reserve Chair Jerome Powell is cautiously analysing the cost scale of various services in the labour market. This initiative is driven by the fact that wages can impose particularly large costs on certain services.