If the monetary tightening is not enough now or easing too early, inflation becomes entrenched and the need to tighten again in the future will be more costly. Thus, don't underestimate the Fed's determination to tighten.

Market worries about the Fed's continued aggressive rate hikes and global economic recession have intensified. Oil prices continue to be under pressure to the downside. The market may continue the downtrend in the short term, but you need to be careful of the risk of an oversold rebound.

Market expectations have been heating up since Powell's speech last week, and recent data is ineffective. Also, the market is in the "boring" period to find new speculations, and this data is difficult to impact expectations. Therefore, the USD is still in a downtrend, the recent rebound space is limited.

The Bank of Canada (BoC) will announce another rate hike on December 7. Despite the unexpected upturn in GDP and tight labor markets in Q3, the market expected it to raise interest rates by 25 basis points. The possibility of a greater rate hike seems remote, but such a statement could have a significant impact on the CAD.

Eyes and Ears earlier today on the Reserve Bank of Australia interest rate decision that was released on December 6th, 2022. The RBA meeting earlier led to an increase of 25 bp in interest rates where traders, central banks, and governments are watching what will the rest of the central banks will do regarding rate increases in the upcoming meetings.

Overall, basic metals have experienced a turbulent year. Most metals performed strongly in Q1, given the increase in supply uncertainty caused by Russia's invasion of Ukraine. However, the metals market has been under heavy pressure for the rest of the year due to the stronger USD, rising interest rates, and weakened downstream demand.