The market is cautious and looking for direction after a volatile start to the year. Key data releases this week, particularly inflation reports, will likely influence future trends.

The strong US dollar rally has started to fade after the December jobs report, with most major currencies showing signs of recovery. The focus remains on the Fed’s next move and potential policy shifts in other central banks.

Gold faces key test at year-end, bulls need to hold above 2069.90 for upside potential. EUR/USD in correction phase, key levels to watch 1.1080 and 1.1120 for direction. GBP/USD expected to fall further before resuming bullish trend, technical correction awaited.

The Japanese yen is gaining momentum on the back of mixed economic data and potential policy changes by the BoJ. The market is closely watching central bank decisions and data releases in both Japan and the US for further direction.

AUD/USD and EUR/USD inch lower as traders await key data releases next week. Mixed sentiment across major currencies as China and eurozone inflation figures take center stage. Risk appetite weighs on major currencies ahead of economic data from China and the eurozone.

Here are the market forecast for major cryptocurrencies this December 27-28, 2023.

Canadian loonie wins again, bagging a second straight week of gains despite flat GDP. US inflation cools, potentially paving the way for Fed cuts, boosting the loonie further. UK pound takes a breather on holiday with mixed economic signals. BoE likely sticking to “higher for longer” rates despite recession risk.

The Euro is benefiting from a risk-on sentiment and anticipation of central bank easing, while the Yen is holding steady despite hints of a future policy change by the BoJ.

Friday’s data releases, particularly the US PCE price index, are likely to drive movement in all three currencies. Stay tuned for updates and potential shifts in market sentiment.

EURUSD has more upside potential in the short term due to hawkish ECB and bullish market expectations. GBPUSD remains highly dependent on relative US and UK economic performance. Both trades require active risk management and close monitoring of economic developments