According to economists at HSBC, the US dollar will rise amid the holiday season. However, they warn investors that the dollar could lose ground next year.

After Russia announced a decrease in production following a price cap on oil exports from the West, and the main pipeline that delivers to the U.S. was closed, oil prices rose on Monday.

Although Brent oil prices fell below the level of $79 per barrel, strategists at Internationale Nederlanden Groep (ING) expect that they will climb to $104 per barrel next year.

According to Goldman Sach’s Peter Oppenheimer, the market's optimistic forecast of peak inflation is unreliable.

Deputy Governor Sharon Kozicki noted that they will be “data dependent” when it comes to further monetary policy decisions. At the same time, she didn’t take more significant rate hikes off the table.

Currently the dollar’s weakening against major currencies gains momentum. This is largely due to the fact that investors are comparing the U.S. Federal Reserve's policy prospects with the possibility of recession amid high interest rates.

Mexico's central bank (Banxico) monetary tightening cycle is likely to end in the first half of 2023. According to the statement of the Franklin Templeton executive, the benchmark interest rate in the Central Bank of Mexico could reach 11%.

U.S. Treasury Secretary Janet Yellen believes that the U.S. economy can avoid a recession. On Thursday, she said that the currently missing wage-price spiral and the loosening of supply chain bottlenecks could contribute to this.

Analysts at Wells Fargo believe that the U.S. dollar will remain strong in the first months of 2023. In the second half of the coming year, the U.S. currency is expected to decline.

USDJPY is maintaining bullish momentum, moving above 137. Economists at Brown Brothers Harriman (BBH) believe the currency pair is likely to hit last week's high, held at 140.