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Market volatility remained in focus last week. On Wall Street, the Dow Jones, S&P 500 and Nasdaq 100 were down about 1.8%, 2.3% and 2.9%, respectively. Things were not so good in Europe. The DAX 40 and FTSE 100 fell around 3.3% and 1.5% respectively. In the Asia-Pacific region, the Nikkei 225 and the Hang Seng Index fell 1.7% and 2.3%, respectively.

This was despite a softer US inflation report for November. Instead, the focus remained on central banks. The Federal Reserve raised interest rates by 50 basis points and continued to stress that more work needs to be done to combat price pressures. Meanwhile, the European Central Bank surprised the markets with a more aggressive hawkish tone.

The latter marked a relatively solid week for the euro. Unsurprisingly, risk aversion meant the Australian and New Zealand dollars underperformed on sentiment. Gold ended relatively flat as a cautious strengthening US dollar was offset by softening Treasury yields. Despite the deterioration of risk appetite, crude oil prices managed to rise.

The risk of economic events cools significantly as we approach the end of 2022. Core PCE, the Fed’s preferred gauge of inflation, is due to come out next week. A softer outcome could underline a less hawkish Fed. Meanwhile, the Bank of Japan rate decision is subject to USD/JPY. What else is in store for the markets in the coming week?

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How the markets performed – 12/12 weeks

Main forecasts:

S&P 500, Nasdaq, Dow Jones forecast for the coming week: fundamentals

Bears have noticeably re-emerged this week with a focus on 2023 prices, but will the bears leave before the end of the year or wait until 2023 opens?

British Pound Outlook – GBP hit by BoE rate split and strikes

The British pound is under pressure at the weekend after yesterday’s BoE rate hike left traders indecisive.

Australian dollar outlook. The US dollar is coming back to life

The Australian dollar was dusted after the US dollar regained its upside, reiterating their hawkish stance following a series of hikes by central bankers. Will AUD/USD fall?

The dollar outlook still carries milestone risk and technical pressure

Holiday trading conditions may begin for the dollar and broader markets in the coming week, but the range of key event risk could actually turn little liquidity into charged volatility. With the debate over the fundamental and technical related axis for this benchmark, traders should keep a close eye on this market.

Gold price forecast for the coming week. XAU/USD Remains Bearish Biased, Where?

While gold prices were largely flat last week, the fundamental landscape remains unmistakably bearish. This comes as XAU/USD is showing increasing technical signs of an impending bearish reversal.

Technical forecasts.

The dollar outlook still carries milestone risk and technical pressure

The dollar was in somewhat of an uncertain technical position, following the high level of risk from last week’s event. Now, as we head into a period that typically sees a drop in liquidity towards the end of the year, the “bigs” like EURUSD are still unclear about their meaning.

S&P 500, Nasdaq, Dow Jones technical forecast for the coming week

The S&P 500, Nasdaq and Dow all produced bearish breakouts following failed breakouts last week. Could the bears be pushed towards the end of the year or should that wait as a theme for 2023?

EUR/USD Technical Outlook

The euro remains flat against the US dollar after the European Central Bank (ECB) signaled a much higher interest rate hike than markets expected. What is the viewing perspective and key levels?

British Pound Technical Forecasts – GBP/USD, EUR/GBP, GBP/JPY

The British pound has been rocked by a series of central bank policy decisions this week. What is the forecast for sterling next week?

— Article text written by Daniel Dubrowski, Senior Strategist at DailyFX.com

— Individual articles compiled by members of the DailyFX team

To connect with Daniel, follow him on Twitter:@ddubrovskyFX



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