Here is what you need to know for next week:
On Friday, Wall Street enjoyed a two-day rally thanks to better-than-expected earnings from big tech companies. However, the positive sentiment may be short-lived given the gloomy global growth outlook and renewed concerns surrounding First Republic Bank. Incoming economic data will be closely watched, although it could potentially be offset by central bank decisions.
It will be a busy week for the US Dollar, as the economic data set to be released includes the ISM PMIs, the ADP Private Employment, and the official employment report. The Federal Reserve will announce its decision on Wednesday, with market participants expecting a final 25 basis points rate hike. The US Dollar Index finished the week little changed around 101.50. The DXY continues to hover around recent lows, holding above but with gains limited. The economic calendar for next week warrants volatility and may challenge the ongoing consolidation pace.
EUR/USD saw a modest rise during the week, continuing to trade near one-year highs but struggling to consolidate above 1.1050. The Eurozone's Q1 GDP narrowly avoided a recession with a 0.1% expansion. The European Central Bank is expected to raise interest rates by 25 basis points next week, as inflation remains elevated.
The Japanese Yen tumbled on Friday following the Bank of Japan's monetary policy meeting. The central bank dropped its forward guidance for interest rates and launched a review of its policies that will take more than a year. "We're not starting the review with the aim of normalizing," said Uedo at his first post-meeting press conference. USD/JPY soared on Friday from 134.00 to 136.55.
The Pound was the best performer among G10 currencies. GBP/USD broke above 1.2550 and climbed to 1.2583, reaching the highest level since June 2022. On the other hand, EUR/GBP suffered on Friday, recording the biggest daily loss in weeks, falling towards 0.8750.
USD/CAD ended the week with little change after a considerable pullback on Friday, signaling a potential reversal that could continue. The pair reached its peak at 1.3667, the highest level in four weeks, before dropping back below 1.3550, despite weaker-than-expected Canadian GDP data. Next Friday, Canada will release its employment report.
New Zealand will release its employment report next week. NZD/USD ended a three-week negative streak after a considerable rally on Friday, with the Kiwi outperforming. The pair rose from 0.6120 to 0.6190.
The Reserve Bank of Australia will make its interest rate decision next week; no change is expected. The key will likely be in the monetary policy statement on Friday. AUD/USD fell during the week but managed to recover 0.6600. The bias is to the downside, but losses seem limited while above 0.6560.
The Colombian Peso is expected to face continued pressure, having been the worst performing currency of the week due to increasing political risk in Colombia. This was triggered by President Petro's decision to remove a moderate finance minister and replace him with a key leftist ally. As a result, USD/COP surged to 4,714 on Friday, experiencing a gain of over 4% for the week.
Commodity prices had a tough week, with corn sliding more than 10%, coffee falling 4%, and soybeans dropping 4%. Crude oil prices dropped 1.5% after trimming losses on Friday. Gold and silver finished the week flat near $1,990 and $25.00, respectively, as they remained mostly sideways. Bitcoin, on the other hand, jumped 7%.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD: US Dollar turns north as central banks’ decisions loom Premium

The US Dollar turned north this past week, partially losing its pace on Thursday, as speculative interest took a break ahead of the United States employment figures scheduled for Friday. On the contrary, the Euro remained on the back foot as the economic future remains uncertain.
GBP/USD remains on track to snap three-week winning streak

GBP/USD recovered toward 1.2550 after coming in within a touching distance of 1.2500 in the second half of the day after Nonfarm Payrolls came in at 199,000 for November. Despite the recent rebound, the pair remains on track to snap a three-week winning streak.
Gold bulls turn hesitant ahead of US inflation data, Fed meeting Premium

Following an impressive rally at the beginning of the week, Gold turned south and snapped a three-week winning streak. As market focus shifts to next week’s key data releases and central bank events, XAU/USD’s technical outlook points to a loss of bullish momentum.
Altcoin bull cycle 2023 picks by analyst: Ethereum, ChainLink, Arbitrum, Optimism

Crypto analyst Michaël van de Poppe picked four altcoins for the ongoing bull run, in his recent video on YouTube. The analyst believes these altcoins could outperform other assets and yield gains for traders, alongside Bitcoin price rally to $48,000.
Week Ahead – Will the central bank bonanza kill the festive joy or fuel it?

Fed, ECB, BoE and SNB hold their final policy decisions of the year. Will they push back on rate cut expectations? US CPI and flash PMIs will be crucial too. UK GDP, Aussie jobs also on the agenda.