Talking Points:

– This week was marked by a hastening in the sell-off around the U.S. Dollar.

– Next week brings a loaded economic calendar, with high-impact U.S. data set to be released each day, Monday-Friday.

Next week’s economic docket picks up considerably, with a heavy focus on U.S. data as we get high-impact USD prints each day of the week. Special focus will likely be paid to PCE on Monday and NFP on Friday, and the first FOMC rate decision of 2018 is on the calendar for Wednesday. There will be no updated economic projections released at this meeting, and for those of you looking for press conferences and Q&A, you’re out of luck as we have to wait until the Fed’s March rate decision when Mr. Jerome Powell takes the reigns at that meeting. Also of interest for that March rate decision is the fact that markets are currently pricing in an approximate 75% chance of a hike, with Wednesday’s meeting carrying a mere 4.7% chance of a move.

Also on next week’s calendar is a heavy smattering of European data, with a considerable focus on inflation data on Tuesday and Wednesday. Next week’s high-impact economic data is listed below, and if you’d like a sortable list, you’re welcome to check out our DailyFX Economic Calendar.

DAILYFX ECONOMIC CALENDAR, HIGH-IMPACT EVENTS

Chart prepared by James Stanley

U.S. DOLLAR DROPS TO FRESH THREE-YEAR LOWS

It’s been another wild week for the U.S. Dollar, furthering a theme that dominated 2017 price action as the pain trade in the Greenback continues.

While this week’s calendar had significant Central Bank rate decisions out of both Japan and Europe, it was what wasn’t on the calendar that really seemed to grasp markets’ attention. The U.S. Dollar came into the week trading very near multi-year lows. A small semblance of support had started to build above the psychological level of 90.00; and with the very likely possibility that both the BoJ and ECB would attempt to talk their currencies lower, it made rational sense to expect some element of support to show, at least in the short-term, as markets waded through each of those Central Bank announcements.