The currency markets have lacked direction this week with the major currency pairs stuck in a range.
As we mentioned last week, this is in large part due to the market anticipating a few consecutive big days of economic data and announcements next week.
On Tuesday we’ll see US inflation data released followed by an interest rate decision announcement by the Fed the following day.
Also on Wednesday, we’re expecting UK inflation figures and on Thursday both the Bank of England and the European Central Bank will announce their next interest rate decisions.
There’s also a raft of GDP, trade and unemployment data coming out from most major western economies. (You can see the full economic diary here.)
Given the ongoing economic problems around the world and the building anticipation, we can expect next week to be volatile with the markets forming a new direction as we approach Christmas.