No getting away from the fact that all eyes will be on the Federal Reserve this Wednesday when they announce the interest rate decision. While it is almost certain that they are going to increase interest rates most will be watching for the following statement as to whether it gives away any signs as to plans and potential speed of increases with regards to interest rates next year. This event alone will cause significant volatility throughout the week as markets position themselves as before and after the announcement, so be prepared for swings in numerous directions. It’s also important to remember that the USD impacts 95% of all other currency pairs so everything will be impacted by this decision on Wednesday.
Tuesday 13th December
2 AM China Industrial Production – previous 6.1%/forecast 6.1%
An important figure to watch as the Chinese economy affects the overall global outlook, and even more so, in the Antipodean region.
9:30 AM UK CPI – previous 0.9%/forecast 1.1%
Another important release for the UK to see how well it is faring following the EU referendum
10 AM Eurozone German ZEW Economic Sentiment – previous 13.8/forecast 14.2
This is an important indicator as it shows the sentiment of institutional investors towards the Eurozone
Wednesday 14th December
9:30 AM UK Average Earnings – previous 2.3%/forecast 2.3%
An important indicator of future inflationary pressure.
1:30 PM US Core Retail Sales – previous 0.8%/forecast 0.4%
An important figure watched by the Fed as it excludes high-priced automobile purchases.
1:30 PM US Retail Sales – previous 0.8%/forecast 0.3%
An important figure to watch as he has a direct impact on inflation.
3:30 PM US Crude Oil Inventories – previous -2.4 million barrels
An important release as indirectly impacts on oil prices, greater stockpiles can reduce prices.
7 PM US Federal Funds Rate and FOMC Statement
The main event of the week. Expected 0.25% interest rate increase. FOMC statement will be important to look for signs of pace of increases next year.
Thursday 15th December
12:30 AM Australia Unemployment Rate – previous 5.6%/forecast 5.6%
Unemployment levels directly affect how much money individuals have to spend and therefore has an impact on inflation and economic growth.
8:30 AM Swiss Interest Rate decision and statement
No expected monetary policy changes but the SNB is one of the most unreliable central banks can sometimes do the unexpected.
9 AM Eurozone Flash Manufacturing PMI – previous 53.7/forecast 53.9
This is an important indicator of economic growth in the manufacturing sector. Above 50 indicates expansion.
9 AM Eurozone Flash Services PMI – previous 53.7/forecast 53.8
This is an important indicator of economic growth in the service sector. Above 50 indicates expansion.
9:30 AM UK Retail Sales – previous 1.9%/forecast 0.2%
Retail sales is one of the biggest drivers behind inflation and therefore is important figure to watch.
10 AM UK Bank of England Interest rate decision and statement
No indications of changes to monetary policy expected
1:30 PM Canadian Manufacturing sales – previous 0.3%/forecast 0.7%
An indication of manufacturing health
1:30 PM US CPI – previous 0.4%/forecast to 0.2%
Important indicator of potential inflationary pressure
1:30 PM US Core CPI – previous 0.1%/forecast 0.2%
As above excluding food and energy prices which can be volatile
Friday 16th December
10 AM Eurozone Final CPI – previous 0.6%/forecast 0.6%
Not a major market mover as it is the final reading about an important figure to note