We are in the middle of the biggest holiday period for the Forex market and for financial markets in general. Last week was quiet, with very little news. This week promises to be even quieter, and again will not be a full week due to holidays. There are no practically no major news events scheduled for this week at all, with only three on the calendar: two concerning the USD and one concerning China.
On the other hand, this week will see the end of 2015 and as such we may get some strong year-end flows. This sometimes happens at the end of December, and as the market has been fairly active this month it would not surprise me if we see some strong movements between Tuesday and Thursday.
There are plenty of holidays worth noting this week. Monday is a public holiday in the U.K., Canada, Australia and New Zealand. Thursday (New Years’ Eve) is a public holiday in Japan and Germany. Friday (New Years’ Day) is a public holiday more or less everywhere.
U.S. Dollar
The greenback is due a couple of high-impact news items this week. It begins on Tuesday with a release of CB Consumer Confidence data. Thursday will see the arrival of Unemployment Claims numbers. Friday will be a public holiday.
China
Friday will see the release of Manufacturing PMI data. Chinese data typically strongly affects the Australian Dollar. Despite the release, Friday is also a public holiday in China.