The US dollar was on the back foot but managed to climb back in a busy week. As we enter the last week before the holidays, how will currencies make their last-minute adjustments? GDP data from the US, the UK, and Canada stand out. Here are the highlights for the upcoming week.

The Fed decided to raise rates and leave the dot-plot unchanged. However, the additional dissent of Charles Evans weighed on the dollar. The greenback was also hit by lower inflation and the narrowing majority that Republicans have in the Senate. But as the week progressed, the dollar recovered also thanks to hopes that the tax bill will pass and an upbeat read on retail sales. The SNB and the BOE left their policies unchanged without rocking the boat. For the pound, the official EU approval that Brexit talks will now enter the second phase was marred by worries about the stability of the government and a not-so-great trade deal. The ECB left its policy unchanged and sounded upbeat about growth. This was not enough to change the direction regarding inflation and the general tone. The euro could not rally. The Aussie enjoyed a great jobs report and recovered nicely.

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