USD Overview (15 December 2021)

Yesterday, USD strengthened against all major currencies except GBP.

The PPI m/m data will be released later at 2130 (GMT+8).

• PPI m/m (Actual: 0.8%, Forecast: 0.5%, Previous: 0.6%)
  
• Core PPI m/m (Actual: 0.7%, Forecast: 0.4%, Previous: 0.4%)
  

The Retail Sales m/m data will be released later at 2130 (GMT+8).

• Core Retail Sales m/m (Forecast: 0.9%, Previous: 1.7%)
  
• Retail Sales m/m (Forecast: 0.8%, Previous: 1.7%)
  

The Federal Reserve will be announcing their monetary policy decision tomorrow at 0300 (GMT+8). It is expected that the central bank will be holding interest rate unchanged at the target range of 0-0.25%. The Fed is also expected to speed up the tapering pace of its bond buying programme. Pay attention to the released economic projections on whether members of the committee have shifted their interest rate projection by looking at the dot plots. If the Fed increases the pace of tapering and members of the committee shifted their timeline for rate hikes earlier, USD may strengthen as a result of the hawkishness.
The central bank will also be holding a press conference at 0330 (GMT+8). During this time, volatility is expected in USD.