USD PRICE OUTLOOK - US DOLLAR IMPLIED VOLATILITY TRADING RANGES (1-WEEK)

Turning to the DailyFX Economic Calendar brings to light the abundance of potential catalysts for volatility on the docket this week. The most prominent event risk from an economic data perspective will likely be monthly PMIs and retail sales on tap for release this Wednesday, 16 December at 13:30 GMT and 14:45 GMT respectively. Additionally, the scheduled Fed meeting and rate decision due Wednesday, 16 December at 19:00 GMT will be accompanied by quarterly economic projections. If the Federal Reserve disappoints the doves and diverges from providing increasingly accommodative policies like other central banks have, it could help the US Dollar firm from current levels.

Ongoing stimulus negotiations is another possible driver of US Dollar volatility this week. Most recently, bipartisan efforts have reportedly proposed a $908-billion relief package that includes a compromise on liability protections, which has been a major sticking point leaving politicians at odds. Nevertheless, it does appear as though a material portion of US Dollar weakness attributed to an expected fiscal stimulus deal has been priced in already.