The year 2020 is finally over, but the economic impact of Covid-19 is far from over. With many of the major economies in lockdown, the road to recovery promises to be long and bumpy. The US dollar is showing signs of stabilizing, but with more easing and stimulus likely under the Democrats, the dollar has more room to decline in the coming weeks and months. Eurozone inflation continues to struggle in the eurozone, as CPI came in at -0.3%, marking a fifth straight decline. UK PMIs were a mixed bag in December. Manufacturing remains strong, as the PMI accelerated to 57.5, up from 55.6 beforehand. This was the highest level since November 2017. Services PMI has slipped into contraction territory and came in at 49.4, below the neutral 50-level. Construction also remains in expansionary territory and the PMI came in at 54.6 points. Canada’s economy showed a loss of 62.5 thousand jobs, the first decline since April. The unemployment rate ticked up to 8.6%, up from 8.7%. In the US, ISM PMIs reports pointed to accelerated expansion in December. Manufacturing PMI improved to 60.7, up from 57.5 beforehand. This beat expectations and was the highest reading since August 2018. Services PMI climbed to 57.2, up from 55.9 beforehand. This exceeded the estimate of 54.5 points. Nonfarm payrolls was a disaster, with a sharp loss of 140 thousand. The consensus estimate called for a gain of 60 thousand. There was better news from wage growth, which jumped 0.8%, up from 0.3% a month earlier. This was the strongest gain since April. US Inflation Report: Wednesday, 13:30. CPI has been weak, but headline inflation is projected to rise to 0.4% in December. The core reading is expected to remain at 0.2%. ECB Monetary Policy Meeting Accounts: Thursday, 12:30. The accounts provide details of the ECB’s most recent policy meeting. Investors will be looking for any hints regarding future monetary policy and possible easing measures in the new year. British GDP: Friday, 7:00. The monthly GDP report has been falling and came in at just 0.4% in October. Analysts are braced for a sharp contraction of 4.6% in November. French CPI: Friday, 7:45. Inflation in the eurozone’s second-largest economy remains soft. The forecast for December stands at 0.2%, after an identical reading last month. Core Retail Sales: Friday, 13:30. Retail sales were dismal in November. The headline figure declined by 1.1%, while core retail sales contracted by 0.9%. In December, the numbers are expected to improve to 0.0% and -0.1%, respectively. Further reading: EUR/USD forecast – for everything related to the euro. USD/JPY forecast – projections for dollar/yen AUD/USD forecast – predictions for the Aussie dollar. USD/CAD forecast – Canadian dollar analysis Forex weekly forecast – Outlook for the major events of the week. Safe trading! Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher MajorsUS Dollar ForecastWeekly Forex Forecasts share Read Next AUD/USD: Bulls and bears jostle around mid-0.7700s amid US stimulus hopes FX Street 11 months The year 2020 is finally over, but the economic impact of Covid-19 is far from over. With many of the major economies in lockdown, the road to recovery promises to be long and bumpy. The US dollar is showing signs of stabilizing, but with more easing and stimulus likely under the Democrats, the dollar has more room to decline in the coming weeks and months. Eurozone inflation continues to struggle in the eurozone, as CPI came in at -0.3%, marking a fifth straight decline. UK PMIs were a mixed bag in December. Manufacturing remains strong, as the PMI accelerated to… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
