Highlights
For this week, the focus is on the policy decision by the Federal Reserve on Wednesday. The Federal Open Market Committee It is widely expected to leave the fed funds target rate unchanged at its current range of 5.25 percent to 5.50 percent for the third consecutive meeting, following last week's move by the Bank of Canada to hold its policy rate at a 22-year high of 5.0 percent, also for the third straight meeting. Tuesday's US CPI data for November is forecast to show inflation eased to 3.0 percent from October's 3.2 percent.
Market participants are also looking at Fed policymakers' projections on how far the fed funds rate will be eased next year, and how Fed Chair Jerome Powell will describe the financial and credit conditions.
Major central banks in Europe are also expected to stand pat on Thursday. The Bank of England is likely to keep Bank Rate at a 15-year high of 5.25 percent for the third meeting in a row while the European Central Bank is also seen leaving the refi rate at a 22-year high of 4.50 percent amid easing inflation.
The US data calendar is thin on Monday.
Producer inflation in Japan is expected to rise just 0.2 percent on year in November, decelerating for the 11th straight month, down from 0.8 percent in October and 2.2 percent in September. Producer prices are forecast to post their first rise in three months, up 0.2 percent on month, after falling 0.4 percent. The upward pressures from earlier supply chain constraints and geopolitical risks have waned, global growth is slowing and subsidies are capping domestic utility costs.
Market participants are also looking at Fed policymakers' projections on how far the fed funds rate will be eased next year, and how Fed Chair Jerome Powell will describe the financial and credit conditions.
Major central banks in Europe are also expected to stand pat on Thursday. The Bank of England is likely to keep Bank Rate at a 15-year high of 5.25 percent for the third meeting in a row while the European Central Bank is also seen leaving the refi rate at a 22-year high of 4.50 percent amid easing inflation.
The US data calendar is thin on Monday.
Producer inflation in Japan is expected to rise just 0.2 percent on year in November, decelerating for the 11th straight month, down from 0.8 percent in October and 2.2 percent in September. Producer prices are forecast to post their first rise in three months, up 0.2 percent on month, after falling 0.4 percent. The upward pressures from earlier supply chain constraints and geopolitical risks have waned, global growth is slowing and subsidies are capping domestic utility costs.
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.
