Tiff Macklem, governor of the Bank of Canada, said that a sharp rise in interest rates is likely to push the country into a deeper recession. But the central bank's failure to tackle inflation presents greater risks to the economy of Canada.

This week will be crucial for the dollar’s dynamics till the end of the year. The last CPI report in the States will be released, and the last FOMC meeting of this year will be held.

According to the expectations of HSBC economists, the British pound sterling will decrease against the U.S. dollar, and a sharp decrease in the pair is unlikely.

According to the forecasts of MUFG Bank strategists, the level of the eurozone interest rate will reach 2.75%, which will be the peak. Thus, the growth of the euro will be limited.

Oil continues to rise on Tuesday. The increase in oil prices is due to the shutdown of a key oil pipeline supplying the United States and high demand from China.

Masayoshi Amamiya and Hiroshi Nakaso, current and former deputy governors of the Bank of Japan, respectively, are considered as possible contenders for the post of the next head of the central bank in April 2023.

According to information provided by the Nikkei daily, the Bank of Japan’s board member Hajime Takata thinks that the Japanese economy hasn’t yet reached a phase when it’s possible to end yield curve control (YCC).

On Sunday, U.S. Treasury Secretary Janet Yellen predicted a significant decline in U.S. inflation in 2023, assuming the absence of unexpected factors.

Economists at Commerzbank report that US inflation data and/or the Fed and ECB data could support the gold market this week.

HSBC economists believe that the U.S. dollar is likely to rise against the yen. This is due to the Fed’s hawkish stance.