Global markets calm before busy trading week
Global financial markets opened Monday, December 15, with a relatively calm tone following last week’s volatility. Investors are preparing for a week packed with high-impact economic data and central bank announcements that could shape monetary policy expectations heading into 2026.
Later in the day, Statistics Canada is set to release November’s Consumer Price Index (CPI), a key inflation metric that could influence the Bank of Canada’s rate outlook. Meanwhile, market participants will closely monitor remarks from Federal Reserve (Fed) officials for clues on future policy direction.
The US Dollar (USD) has weakened against most major currencies this month, with the sharpest decline seen against the Canadian Dollar (CAD). Following last Wednesday’s Fed policy announcement, the USD Index closed its third consecutive week in negative territory and now trades slightly below 98.50.
On Tuesday, the US Bureau of Labor Statistics will publish October’s Nonfarm Payrolls (NFP) report, which could significantly impact expectations for the Fed’s January meeting. Early Monday, US stock index futures rose about 0.3% in European trading, reflecting a risk-positive sentiment across markets.
In a major geopolitical development, Ukrainian President Volodymyr Zelenskiy held five hours of talks with US envoys in Berlin on Sunday, offering to drop Ukraine’s long-standing ambition to join NATO in an effort to end the war with Russia. Talks are expected to resume Monday, and optimism surrounding a potential peace deal continues to support risk appetite.
Meanwhile, tensions between the United States and Venezuela escalated last week after the President of the United States announced that the US Coast Guard had seized an oil tanker off the coast of Venezuela. This development raised concerns about potential supply disruptions and provided support to crude oil prices.
USD/CAD holds steady above 1.3750 after falling more than 0.3% last week. Canadian CPI is expected to rise to 2.4% in November from 2.2% in October.
EUR/USD closed above 1.1700 last week after a three-day rally and remains in consolidation below 1.1750 early Monday. The European Central Bank (ECB) will announce its policy decision on Thursday.
USD/JPY faces bearish pressure and declines toward 155.00, losing about 0.5% on the day. Japanese firms cite easing trade uncertainty and strong tech demand as key drivers of business sentiment.
Gold (XAU/USD) maintains its bullish momentum after rising more than 2% last week, climbing toward $4,350 in early European trading.
GBP/USD corrected lower after reaching its highest level since mid-October near 1.3440 and now fluctuates above 1.3350. The Bank of England (BoE) is set to announce its interest rate decision on Thursday.