Weekly Outlook: Dec 11 – Dec 15; FOMC, BoE, and ECB policy meetings. EU Summit in Focus

This week, three central banks gather for the last time this year. The FOMC is expected to hike rates on Wednesday, while on Thursday the central Bank torch will be passed to the BoE and the ECB. Thursday also marks the start of the EU summit.
Monday will probably be a relatively quiet day, as no major events or indicators are scheduled.
On Tuesday, during the Asian morning, we get Australia’s NAB business survey for November, while during the European morning, the German ZEW survey for December is due to be released. Both the expectations and the current condition indices are forecast to have declined somewhat. However, the trends of both these indices are still to the upside, confirming the robust economic momentum in Eurozone’s growth engine.
In the UK, we get CPI data for November. Both the headline and the core rates are expected to have ticked up, to 3.1% yoy and 2.9% respectively. In any case, we don’t expect such data to tempt BoE policymakers to act on Thursday. After all, the message we got from the last gathering was that the hike was just a one-off move, and not the beginning of a normalization cycle.

Read the full financial markets weekly outlook on JFD Research.

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