Investors are showing more signs of worries. Over the past two weeks, option bets on selloff bonds in Germany have tripled.

As said by Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman, it’s still unclear what impact European sanctions and the Russian oil price cap have had on the economy.

The world's biggest central banks will end their most aggressive year of interest rate hikes this week. However, their fight against inflation is not over yet.

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).

According to investors, Japan will face a lack of liquidity in its debt market next year. Neither reductions in large-scale bond purchases nor even adjustments to yield-curve control will be able to prevent this problem.

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

The November inflation data, which will be under close attention on Tuesday, will show a potential to increase in interest rates in 2023.

As compared to the previous year, wholesale prices in Japan increased by 9.3%, according to November data. The pace of price growth didn’t show any significant changes from October.

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.