The U.S. dollar moved lower again last week. However, economists at TD Securities believe the currency is going to strengthen ahead of the Consumer Price Index (CPI) data for November and the Federal Reserve (Fed) meeting in December.
It’s reported that the rise in gold has started to slow down. TD Securities economists say the XAUUSD pair could become risky for bulls.
This year, the Russian rouble has become one of the few currencies that managed to outperform the U.S. dollar. However, according to the forecast of MUFG Bank economists, the rouble’s strengthening will stop next year, and it will weaken again, as the dollar itself.
Despite a rapid rise in inflation, Bank of Japan (BOJ) Deputy Governor Masazumi Wakatabe warned central banks about a continuing risk of so-called “Japanification”, or economic stagnation.
Former US Treasury Secretary Lawrence Summers warned that the Fed may have to raise interest rates in the future. Rates, as the economist notes, will be increased more than the markets currently expect.
Swati Dhingra, the newest member of the bank’s monetary policy committee, told the Observer newspaper that the UK could fall into a deep and prolonged recession if the Bank of England hikes interest rates to above 4.5%.
The representative of the European Central Bank from two major regional economies declared that they plan to get inflation back to its 2% target. They said the ECB's tougher policy would help deal with rising prices.
Francois Villeroy de Galhau, Governing Council member of the European Central Bank (ECB) and Governor of the Bank of France, stated that there is a need to raise interest rates by 50 basis points in order to curb the growth of consumer prices.
Bank of England representative Swati Dhingra declared that the growing interest rates can provoke a severe and long recession. Also, Dhingra added that an economic decline has already begun.
Oil prices rose 2% on Monday as OPEC+ countries maintained their output targets. This surge happened ahead of the European Union's (EU) cap on the price of black gold.
