Top Economic Events To Watch | December 12 – 16

A double dose of potentially market-moving US events this week could set the tone for asset prices in the rest of 2022 and beyond. Investors brace for a key inflation report followed by the last Federal Reserve meeting of the year.

Let’s take a look at the upcoming economic events 🔻

BoE Governor Speech – Tuesday, December 13th

📅 BoE Governor Speech will be held on Tuesday, December 13 at 13:00 (GMT +2).

Bank of England Governor Andrew Bailey is speaking at a press conference following the UK central bank’s latest monetary policy decision.

Asset(s) Affected: $GBP and FTSE100 🇬🇧

Why is this event important?

During the press conference, the governor of the Bank of England may announce changes in the monetary policy, or confirm a further increase in the interest rate. Any statement may cause increased volatility in the British Pound ($GBP) and UK stock market.

US CPI and Core CPI – Tuesday, December 13th

📅 CPI and Core CPI will be released on Tuesday, December 13 at 15:30 (GMT +2).

The CPI, or Consumer Price Index, tells us how much prices for a basic basket of products have fluctuated recently.

Asset(s) Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

📊 A high CPI means inflation hasn’t eased, meaning the Fed is likely to raise interest rates in order to reduce inflation levels. Higher interest rates usually lead to a retreat in the stock markets.

CPI UK – Wednesday, December 14th

📅 On Wednesday, December 14, the CPI UK will be released at 09:30 (GMT+2).

The UK Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

Asset(s) Affected: $GBP and FTSE100 🇬🇧

Why is this event important?

📊 The CPI is one of the most commonly used tools to measure inflation and deflation. Inflation is an important indicator of an economy’s health. Governments and central banks use the CPI and other indices to make economic decisions.

Fed Decision, Conference and Economic Projections – Wednesday, December 14th

📅 On Wednesday, December 14, the Fed Decision, Conference and Economic Projections will be held at 21:00 (GMT+2).

The US Fed’s statement is the primary tool the panel uses to communicate with investors about monetary policy. It contains the outcome of the vote on interest rates, discusses the economic outlook, and offers clues on the outcome of future votes.

Asset(s) Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

Will the Fed raise interest rates at a fast clip or slow clip? How aggressively will they have to act to lower inflation? Higher interest rates usually spell a downfall for businesses and consequently, for stock prices. Watch for the release of the Feds’ decision!

BoE Rate Decision, votes and speech – Thursday, December 15th

📅 BoE Rate Decision, votes and speech will be held on Thursday, December 15 at 14:00 (GMT +2).

The statement of the Bank of England on monetary policy contains the key points about the economic policy of the main regulator of the country. The forthcoming statement will also contain information on the updated interest rate.

Asset(s) Affected: $GBP and FTSE100 🇬🇧

Why is this event important?

📊 The announcement of an interest rate change has a significant impact on the stock and currency markets. In particular, a rate hike could support the national currency and have a negative impact on stocks in the UK. At the same time, a decrease, or retention of the key rate could provoke a rally in British equities, but lead to a decline in the pound.

Retail Sales US – Thursday, December 15th

📅 The Retail Sales US will be released on Thursday, December 15 at 15:30 (GMT +2).

The term retail sales refer to an economic metric that tracks consumer demand for finished goods. This figure is a very important data set as it is a key monthly market-moving event.

Asset(s) Affected: $USD and $US Stocks 🇺🇸

Why is this event important?

📊 Retail sales are reported each month by the US Census Bureau and indicate the direction of the economy. It acts as a key economic barometer and whether inflationary pressures exist. Retail sales are measured by durable and non-durable goods purchased over a defined period of time.

❗ A higher-than-expected reading may indicate a positive/bullish signal for the USD, while a lower-than-expected reading may indicate a negative/bearish signal for the USD.

ECB Interest Rate Decision – Thursday, December 15th

📅 The ECB Interest Rate Decision will be released on Thursday, December 15.

The ECB Press Conference follows the European Central Bank meeting. The press conference is normally given by the ECB President. His comments on the interest rate decisions may influence the euro and EU stocks volatility.

Asset(s) Affected: $EUR and EU Stocks 🇪🇺

Why is this event important?

📊 The ECB may raise its deposit rate by 50 basis points to 2.00% this week, even though the Eurozone economy is almost certainly in recession as it struggles with inflation five times its target. Traders watch interest rate changes closely, as short-term interest rates are the primary factor in currency valuation. A higher-than-expected rate is positive/bullish for the $EUR, while a lower-than-expected rate is bearish for the $EUR.

That’s it for this week! 👋