Market -Weekly Outlook Dec 17 2018

Forex - dollar-1362244

In the week ahead; the global financial markets will shift their focus to the Wednesday’s minutes of the Federal Reserve’s latest policy meeting. The Fed is widely expected to announce a fourth rate hike for 2018. Investors will also be watching signs from the Fed about plans for next year.

Let’s take a quick look at the most important events that are likely to affect the market this week:

  1. U.K Consumer Price Inflation (Year-Over-Year). 

The U.K will report on the Consumer Price Index (CPI) on Wednesday at 09:30 GMT. The Forecast is to fall 2.3%, from 2.4%. On a monthly basis, the forecast is to inch up 0.2%, from 0.1% a month earlier.

A selling opportunity is likely for GBPUSD and GBPJPY.

2. Canada Consumer Price Index (Nov).

Canada will report on the Core Consumer Price Index (CPI) for Nov on Wednesday at 13:30 GMT. The Forecast is to fall -0.1%, from 0.3% a month earlier.

A buying opportunity is likely for USDCAD.

3. Federal Reserve Rate Decision & Press Conference.

The Federal Reserve will announce its federal funds’ rate and publish updated economic projections at its last policy meeting of the year on Wednesday at 19:00 GMT.

The Federal Reserve is expected to raise interest rates by a quarter point for a fourth time this year (in a range between 2.25%-2.5%) at the conclusion of its two-day policy meeting.

Fed Chair Jerome Powell will hold what will be a closely-watched press conference 30 minutes after the release of the Fed’s statement, as investors look for fresh clues on inflation and the forecast for the coming year.

4. Bank Of Japan Rate Decision. 

The Bank of Japan will announce its benchmark interest rate and publish a rate statement on Thursday at 02:00 GMT.

The central bank is expected to keep policy on hold. And keep short-term interest rates at minus 0.1% and the 10-year government bond yield target at around zero percent.

5. Bank Of England Rate Decision.

The Bank of England will announce its latest monetary policy decision on Thursday at 12:00 GMT. The forecast is that Central Bank will keep policy on hold. And keep short-term interest rates at 0.75%.