As we step into the week of December 9–13, the financial markets are bracing for a wave of critical economic releases. From inflation data shaping monetary policy to pivotal interest rate decisions, these events will set the tone for currencies, equities, and broader market trends.
In this overview, we’ll break down the most anticipated reports and announcements, including forecasts and their potential impact on major assets like $EURUSD, $USDCAD, and global indices.
🇺🇸 CPI and Core CPI m/m — December 11, at 15:30 (GMT+2)
Get ready for the release of the latest U.S. inflation data, including CPI and Core CPI figures. The market is expecting a steady monthly growth of 0.2%, matching the previous reading. These numbers are crucial for gauging price stability and could significantly influence major markets like $EURUSD, $NAS100, $US30, and $SPX500.
Investors and traders will be watching closely, as any surprises could shake currency pairs and stock indices, especially with ongoing speculation around the Federal Reserve's next steps.
🇨🇦 BoC Interest Rate Decision — December 11, at 16:45 (GMT+2)
The Bank of Canada's upcoming interest rate decision is drawing significant attention, especially for those monitoring the USD/CAD currency pair. Currently, the rate stands at 3.75%, but a Reuters poll indicates that 21 out of 27 economists anticipate a 50 basis point cut, which would bring the rate down to 3.25%.
This expected rate cut is largely in response to Canada's rising unemployment rate, which reached 6.8% in November — the highest in nearly eight years.
For traders, these developments suggest that the $USDCAD pair might resume its upward trend, especially if the Bank of Canada implements the anticipated rate cut. A lower Canadian interest rate typically makes the loonie less attractive, potentially leading to a stronger U.S. dollar against it.
🇪🇺 ECB Interest Rate Decision — December 12, at 15:15 (GMT+2)
The European Central Bank (ECB) is gearing up for its final policy meeting of 2024, with widespread expectations of a 25 basis point rate cut, bringing the key deposit rate down to 3.15%. This move comes as the eurozone grapples with subdued economic growth and inflation nearing the ECB's 2% target.
In anticipation of this decision, the euro has weakened, with $EURUSD trading near 1.0550. A rate cut could further pressure the euro, potentially leading to a stronger dollar against it. Traders should monitor this development closely, as it may present significant opportunities in the forex market.
That's it for this week! 👋
As this week brims with crucial economic data points, market participants should brace for potential swings and volatility.
