Huixun summary:The dollar rose in choppy trade on Friday, extending sharp gains from the previous session, as risk appetite waned and investors grapple with the prospect that rising borrowing costs still have a long way to go. Gold rebounded, but suffered its biggest weekly drop since mid-November after the Fed said further interest rate hikes were needed to curb inflation; oil prices fell nearly 2.5 percent, tracking broad losses in global stock markets on fears of a looming recession, after European and North American Central banks have indicated that they will continue to aggressively fight inflation.On Monday (December 19), Beijing time, the market ushered in the interest rate decision of the Bank of Japan this week. Bank of Japan Governor Haruhiko Kuroda will hold a press conference on monetary policy. It is expected that Bank of Japan Governor Haruhiko Kuroda will reiterate the need to maintain monetary stimulus policies. to ensure continued inflation. In addition, the Reserve Bank of Australia announced the minutes of its monetary policy meeting, and the WTO General Council meeting will be held until December 20.The data and news released the day before yesterday:U.S. stocks closed lower for a third straight session on Friday and fell for a second week in a row, amid continued fears that the Federal Reserve's actions to curb inflation will tip the economy into recession; Staggered down. Comments from Fed Chairman Jerome Powell heralded further policy tightening, with policymakers expecting rates to breach the 5% mark in 2023, a level not seen since 2007.Comments from other Fed policymakers added to those concerns. New York Fed President John Williams said on Friday that the central bank could still raise interest rates more than it expected next year. Aggressive policy tightening is not expected to lead to a recession, he added.For the week, the Dow fell 1.66%, the S&P 500 fell 2.09%, and the Nasdaq fell 2.72%. Money market bets suggest the Fed will raise rates at least twice next year by 25 basis points each, hitting a terminal rate of around 4.8% in the middle of the year before dropping to around 4.4% by the end of 2023.On the economic front, data showed that U.S. business activity shrank further in December, with new orders slipping to the lowest level in two-and-a-half years, although slowing demand helped cool inflation. The tech-heavy Nasdaq closed below its 50-day moving average on Thursday, a key technical level seen as a sign of momentum. On Friday, the S&P 500 also closed below its 50-day moving average.Gold rallied on Friday but posted its biggest weekly loss since mid-November after the Federal Reserve said more rate hikes were needed to curb inflation. Spot gold rose 0.8% to $1,791.59 an ounce, but has shed about 0.3% for the week. Edward Moya, senior analyst at OANDA, said, "A lot of traders are focusing on the Fed and the European Central Bank, they have signaled further tightening policy, and we have seen a sharp rise in bond yields around the world, which is why gold has fallen this week."The Federal Reserve raised interest rates by 50 basis points on Thursday, as expected, with Chairman Jerome Powell saying the central bank would raise rates next year despite growing fears of a recession. The European Central Bank and the Bank of England have also hinted at similar rate hike strategies. Gold is considered a hedge against inflation, but rising interest rates raise the opportunity cost of holding non-yielding bullion.Commerzbank expects gold to fall back towards $1,750 an ounce before the Fed's current rate hike cycle is clearly over, and expects gold prices to rise to $1,850 by the end of 2023.Oil prices fell more than $2 on Friday, tracking broad losses in global stock markets on fears of a looming recession after central banks in Europe and North America said they would remain aggressive in their fight against inflation. The Fed said it would raise interest rates further next year, even though the economy may be in recession. On Thursday, the Bank of England and the European Central Bank also raised interest rates to fight inflation.Both indexes climbed for the week, helped by gains in the first three days of the week. Brent crude posted its biggest weekly gain since early October, after posting its biggest weekly loss since August in the previous week.Earlier, the U.S. Department of Energy said it would begin buying back oil to replenish the Strategic Petroleum Reserve (SPR), the first time since releasing a record 180 million barrels of oil from storage this year. Subsequently, oil prices briefly regained some lost ground.The dollar briefly fell after data showed U.S. business activity shrank further in December, with new orders slipping to the lowest level in more than two-and-a-half years, while weak demand helped cool inflation sharply.S&P Global said on Friday that its flash U.S. composite PMI output index tracking manufacturing and services fell to 44.6 this month from a final reading of 46.4 in November, keeping the index below the 50 mark for the sixth straight month. This is the threshold at which the private sector shrinks.Erik Bregar, director of foreign exchange and precious metals risk management at Silver Gold Bull in Toronto, said: "The weaker-than-expected flash PMI will not prevent the Fed from raising interest rates. You see why the dollar was in demand until the end. The jury is still out on whether the dollar has peaked. I think if risk aversion persists through the holidays, we could see the dollar rebound. This momentum in the dollar is at least for the next year There is still some support in two weeks."In afternoon trade, the dollar was down 0.9% against the yen at 136.56, having hit a two-week high in the previous session. Sterling slipped 0.1% to $1.2165, while the euro fell 0.3% to $1.0597.The euro also fell on Thursday after the European Central Bank raised interest rates and signaled the hike was far from over, stoking fears of a potential global recession and sending investors into the safe-haven dollar. Federal Reserve Chairman Jerome Powell said policymakers expect U.S. interest rates to rise further and remain elevated for longer.New York Fed President William Williams stepped up his hawkish rhetoric on Friday, saying the central bank could still raise interest rates next year more than it currently expects. The Fed expects the peak federal funds rate to be 5.1%.Still, financial markets don't appear to be buying the Fed's hawkish stance. The fed funds futures market is already pricing in a rate cut through the end of 2023. "Few expect the Fed to deliver on Thursday's hawkish stance," said Karl Schamotta, chief market strategist at Corpay in Toronto.The dollar index rose 0.2% to 104.69 after rebounding more than 0.9% on Thursday. The index has soared about 9 percent this year as the Federal Reserve aggressively raised interest rates, sucking money back into dollar-denominated bonds. However, the dollar index has fallen about 8 percent since hitting a 20-year high in September, as U.S. inflation slowed, raising hopes that the Fed's rate-hiking cycle may soon be over.In Asia, the Bank of Japan is due to decide on policy on Tuesday and while no changes are expected at the meeting, some market participants have begun betting on some adjustments in stimulus as Governor Haruhiko Kuroda prepares to leave in April .The risk-sensitive Australian dollar was down 0.2 percent at $0.6690. The Australian dollar tumbled 2.38% in the previous session, its biggest drop since March 2020. However, the New Zealand dollar rose 0.7% to $0.6383.U.S. dollar index technical analysis:The U.S. index was blocked below 104.85 last Friday, and supported above 104.20, which means that the U.S. dollar may maintain an upward trend after falling. If the U.S. index falls above 104.30 today and is supported, the target for the market outlook will be 105.00--105.25. Today, the short-term resistance of the US index is 104.95--105.00, and the important short-term resistance is 105.20--105.25. Today, the short-term support of the US index is 104.30--104.35, and the important short-term support is 103.90--103.95.EUR/USD technical analysis:The fall of Europe and the United States last Friday was supported above 1.0585, and the rise was blocked below 1.0665, which means that Europe and the United States may maintain a downward trend after a short-term rise. If the rise in Europe and the United States is blocked below 1.0650 today, the target for the market outlook will be 1.0565--1.0535. Today, the short-term resistance in Europe and the United States is at 1.0645--1.0650, and the important short-term resistance is at 1.0690--1.0695. Today, the short-term support in Europe and the United States is at 1.0565--1.0570, and the important short-term support is at 1.0535--1.0540.Gold technical analysis:Gold's fall last Thursday was supported above 1773.30, and its rise was blocked below 1795.00, which means that gold may maintain a downward trend after a short-term rise. If gold's rise today encounters resistance below 1801.00, the target for future declines will be 1779.00--1766.00. Today, the short-term resistance of gold is 1800.00--1801.00, and the important short-term resistance is 1807.00--1808.00. The short-term support of gold today is 1779.00--1780.00, and the important short-term support is 1766.00--1767.00.Economic Calendar:Financial events:Market volatility:European stock markets closed: Germany’s DAX30 index closed down 96.88 points, or 0.69%, at 13889.35 points on December 16 (Friday);On December 16 (Friday), the British FTSE 100 index closed down 90.47 points, or 1.22%, to 7335.70 points;On December 16 (Friday), the French CAC40 index closed down 70.14 points, or 1.08%, to 6452.63 points;The European Stoxx 50 Index closed down 30.95 points, or