After weeks of predictions and uncertainties, forex market this week will see some realizations. The week's schedule is quite crowded, started by the Tankan report in Japan, going through FOMC meeting in the USA, plus various economic releases and Central Bank Governors speeches. In this kind of circumstances, you could suffer extreme gain and loss, up to whose prediction and which indicator has the stronger influence. Here, we invite you to analyze the attendants of forex party this week.

After weeks of predictions and uncertainties, forex market this week will see some realizations. The week's schedule is quite crowded, started by the Tankan report in Japan, going through FOMC meeting in the USA, plus various economic releases and Central Bank Governors speeches. In this kind of circumstances, you could suffer extreme gain and loss, up to whose prediction and which indicator has the stronger influence.

Here, we invite you to analyze the attendants of major forex party this week.

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From East to the West
In the country of the Rising Sun, Tankan survey was released yesterday. Tankan (kigyo tanki keizai kansoku chosa/ short-period economy observation) is a business survey in which Bank of Japan (BoJ) asked thousands of Japanese companies about the trends and current business condition. Tankan usually has moderate impact on forex. However, yesterday's release which said that businesses are in the best condition in six years, was able to make USD/JPY fell slightly. Nevertheless, the absence of another support for Yen in the forex calendar this week could mean another rally for USD/JPY.

Australian government are going to release mid-year economic forecast at December 17th. Last week Aussie was depressed after the comment of RBA Governor's Glenn Stevens that lower exchange rate is preferable for Australian economy than lower interest rate. If he says something equally controversial in his testimony at December 18, then there is a high probability AUD will sink further.  

In the UK, winter apparently didn't deter Bank of England's activities. This week, apart from UK's CPI release, we will see BoE's MPC Meeting Minutes publication. GBP/USD volatility would probably rise. Depending on FOMC decision, it could weaken or strengthen. But even if GBP fall, there is still retail sales report on Dec 19 and GDP on Dec 20 which, if they go on according to the prediction, could mean valuable support for sterling. Retail sales and GDP are two of the most significant reports in forex market.

Euro this week will rest on ECB Governor's Mario Draghi's speech tonight and Germany's economic reports. Focus lies in Ifo business climate index. It is a report from Ifo institute's surveys on the current business condition and expectation for the next six month. This index indicates Germany economic activities, and has strong impact on Euro. Survey by Bloomberg mentioned that Germany business confidence will rise to the highest point in one and a half year. If this is true, it could be a considerable support for Euro.

Still on Tapering
Regardless, all eyes are still on the US. Will the Fed cut financial stimulus? Analysts quoted by Bloomberg said that yes, tapering will be done sooner; but they disagree on when exactly it will be done. Such signal clearly indicate stronger USD this week. Apart from that, reports on CPI, GDP, and house sales will enliven market volatility.

Situation where several strong impact news released around the same time happen frequently. Moreover, the end of year marks last moments of trading before holiday. We predict intraday volatility could be considerably high. Please be very careful if you decided to enter the market anyway; but you've got to know that this is the time to make some profit to buy more presents for your loved ones.