Highlights
The focus is on the US consumer price index, which is the final CPI report before the next two-day meeting of the Federal Open Market Committee ending on Feb. 1. The core CPI excluding food and energy prices is forecast to have risen 0.3 percent on the month in December after rising 0.2 percent and 0.3 percent the last two reports, which were much lower than expected. The pace of year-over-year increase in the core measure is expected to ease to 5.7 percent from 6.0 percent.
Overall prices are forecast to come in unchanged on the month after December's 0.1 percent increase, which was also much lower than expected. The annual rate for the total CPI is also seen decelerating 6.6 percent from 7.1 percent.
Jobless claims for the January 7 week are expected to come in at 215,000 versus 204,000 in the prior week.
For the monthly Treasury statement, forecasters see a $248.0 deficit in December that would compare with a $191.3 billion deficit in December a year-ago and a deficit in November this year of $248.5 billion. December is the third month of the government's fiscal year.
Among Fed officials, Philadelphia Federal Reserve Bank President Patrick Harker will speak on the economic outlook before the Main Line Chamber of Commerce Economic Forecast 2023 and Annual Meeting at 7:30 a.m. EST (1230 GMT).
St. Louis Federal Reserve Bank President James Bullard will speak and participate in a moderated conversation on the US economy and monetary policy before the virtual Wisconsin Bankers Association Midwest Economic Forecast Forum at 11:30 a.m. EST (1630 GMT).
At 12:40 p.m. EST (1740 GMT), Richmond Federal Reserve Bank President Thomas Barkin will speak before the Virginia Bankers Association/Virginia Chamber of Commerce Financial Forecast event.
In Asia, the Bank of Korea is expected to raise the Base Rate by another 25 basis points to 3.50 percent after hiking it to an 11-year-high of 3.25 percent from 3.00 percent by a unanimous vote at its last meeting on Nov. 24, saying the bank must maintain its tightening mode for some time as inflation is projected to run well above the target level for a considerable time. The board said it will closely monitor policy decisions by the US Federal Reserve and their influence on the foreign exchange market as well as other factors including international commodity prices. The bank has slowed the pace of its tightening from a 50-basis-point-hike conducted in October.
China's trade surplus for December is expected to widen slightly to $74.40 billion after shrinking from October's $85.15 billion to a below-consensus $69.84 billion in November, when exports slumped 8.7 percent on the year amid slowing global demand and imports also plunged 10.6 percent as the lingering drag from the pandemic limited domestic economic activity.
Overall prices are forecast to come in unchanged on the month after December's 0.1 percent increase, which was also much lower than expected. The annual rate for the total CPI is also seen decelerating 6.6 percent from 7.1 percent.
Jobless claims for the January 7 week are expected to come in at 215,000 versus 204,000 in the prior week.
For the monthly Treasury statement, forecasters see a $248.0 deficit in December that would compare with a $191.3 billion deficit in December a year-ago and a deficit in November this year of $248.5 billion. December is the third month of the government's fiscal year.
Among Fed officials, Philadelphia Federal Reserve Bank President Patrick Harker will speak on the economic outlook before the Main Line Chamber of Commerce Economic Forecast 2023 and Annual Meeting at 7:30 a.m. EST (1230 GMT).
St. Louis Federal Reserve Bank President James Bullard will speak and participate in a moderated conversation on the US economy and monetary policy before the virtual Wisconsin Bankers Association Midwest Economic Forecast Forum at 11:30 a.m. EST (1630 GMT).
At 12:40 p.m. EST (1740 GMT), Richmond Federal Reserve Bank President Thomas Barkin will speak before the Virginia Bankers Association/Virginia Chamber of Commerce Financial Forecast event.
In Asia, the Bank of Korea is expected to raise the Base Rate by another 25 basis points to 3.50 percent after hiking it to an 11-year-high of 3.25 percent from 3.00 percent by a unanimous vote at its last meeting on Nov. 24, saying the bank must maintain its tightening mode for some time as inflation is projected to run well above the target level for a considerable time. The board said it will closely monitor policy decisions by the US Federal Reserve and their influence on the foreign exchange market as well as other factors including international commodity prices. The bank has slowed the pace of its tightening from a 50-basis-point-hike conducted in October.
China's trade surplus for December is expected to widen slightly to $74.40 billion after shrinking from October's $85.15 billion to a below-consensus $69.84 billion in November, when exports slumped 8.7 percent on the year amid slowing global demand and imports also plunged 10.6 percent as the lingering drag from the pandemic limited domestic economic activity.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
