Jason

The Federal Reserve is seeking to push investors into reevaluating their portfolios by injecting chaos into markets.

Yellen's speech and the New York Fed's inflation expectations survey both indicate that the CPI is likely to slow this time, which also means that the Fed is about to enter the second phase of tightening.

Numerous divisions within the ECB over whether to slow rate hikes. Compared to the Fed, which has a "slower, longer, higher" policy path, this undoubtedly provides upward support for the Euro.

The US November PPI data will be released during the day, and together with the University of Michigan Consumer Confidence data, are the two most important economic data this week. If the two data performance is weak, it will hear the market expectation again.

In the short term, USD/CAD will enter a situation to see 'who is worse' on both sides. In addition, one thing to note is that the BOC slowed down or even suspended interest rate hikes, which may lead to the market expecting the same from the Fed. Overall, USD/CAD is still in a downtrend.

Market speculation about recession complicates the USD trend. As it stands, market speculation about recession may come a bit earlier than market expectations, and it may only be the beginning, with expectations of slowing down mixed in. It means that the USD will probably see some more shocks for a while before moving lower.

The dollar may see an oscillation or even a small retracement, but the overall downtrend remains unchanged, and the gold still has room to move up.

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 article published by Wall Street Journal reporter Nick Timiraos, coupled with the U.S. data released yesterday and last Friday's non-farm payrolls, has shaken current market expectations, but there's no significant change.

The non-farm payrolls have not changed the market's expectations for the Fed to slow down interest rate hikes, which is fundamental to gold's ability to continue to rise. The U.S. ISM non-manufacturing PMI to be released during the day will also likely be supportive of gold.