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Uncle Sam won’t be printing a lot of economic reports this week, which means that dollar traders could take their cues from other catalysts.

Which market themes should you pay closer attention to?

Take a look at this list:

Closely watched data releases

  • Crude oil inventories (Dec 9, 3:30 pm GMT) to rise by 0.9% after 0.7% gain
  • Inflation rate (Dec 10, 1:30 pm GMT) to print at 0.1% (from 0.0%)
  • Core CPI also seen improving from 0.0% to 0.1%
  • Initial jobless claims (Dec 10, 1:30 pm GMT) to remain above 700K this week
  • Producer prices (Dec 11, 1:30 pm GMT) to slow down from 0.3% to 0.2%
  • Core PPI could print at 0.2% (from 0.1%) in November

Overall dollar demand

  • The U.S. Food and Drug Administration meets this week to discuss the approval of the Pfizer/BioNTech vaccine
  • Markets also have eyes on the bi-partisan stimulus bill
  • Positive news on the vaccine, U.S. stimulus, and Presidential transition would inspire risk-taking and drag the safe-haven dollar lower
  • Other market themes, such as BOC and ECB’s policy decisions; Brexit negotiations, and the Fed’s monetary policy support can also influence the demand for the dollar

Technical snapshot

  • RSI considers the dollar “oversold” against the euro, Kiwi, and the Loonie on the daily time frame
  • USD/CHF is also a hair’s breadth away from oversold levels
USD Forex Pairs RSI from MarketMilk
USD Forex Pairs RSI from MarketMilk
  • EMAs are showing the dollar’s broad weakness against almost all of its counterparts on the daily time frame
  • USD is seeing short-term demand against GBP and NZD
USD Forex Pairs EMAs from MarketMilk
USD Forex Pairs EMAs from MarketMilk
  • The dollar saw the most volatility against the pound, euro, Kiwi, and the franc in the last week
USD Forex Pairs Volatility from MarketMilk
USD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read USD’s price recap for Nov. 30 – Dec 4!