Markets will look closely at US personal income and spending figures Friday, featuring the personal consumption expenditures price index, the Federal Reserve's favored inflation barometer.

Expectations call for a 0.3 percent rise on the month for PCE prices in December, and an increase of 0.2 percent for core PCE prices, excluding food and energy. That would put the annual inflation rates at 2.6 percent and 2.8 percent, which remains well above the Fed's 2 percent target. Fed Chair Jerome Powell underlined Wednesday that officials need to see signs that disinflation progress is continuing before they will consider cutting interest rates again.

Personal income and spending are also expected to show solid increases of 0.4 percent and 0.5 percent, respectively, which suggests ongoing economic strength at year end. That squares with the 4.2 percent rise in consumer spending reported Thursday for the fourth quarter, up from 3.7 percent in Q3, and is not surprising given resilience in the labor market.

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.

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.