After a more dovish take by the Fed yesterday, will other major central banks also follow suit and deliver a similar message to wrap up the year? It was not really expected but after the surprise by Powell & co. yesterday, nothing can be ruled out in trading this week.
The European session ahead will feature three more major central bank policy decisions with the SNB, BOE, and ECB all on the agenda.
The Swiss central bank is expected to play things in a more straightforward manner today while the BOE and ECB are expected to reaffirm the higher rates for longer narrative. The main difference between the Fed and the latter two is that the US inflation picture is arguably in a much better spot compared to the UK and Eurozone. As such, that might make it tougher for the BOE and ECB to try and sell any suggestions of a rate cut at this stage.
It’s going to be a fun and interesting day ahead regardless, so make sure you get that cup of coffee and get yourself ready for a bustling day of trading.
0730 GMT – Switzerland November producer and import prices
0800 GMT – Spain November final CPI figures
0830 GMT – SNB announces Q4 monetary policy decision
1200 GMT – BOE announces December monetary policy decision
1315 GMT – ECB announces December monetary policy decision
1345 GMT – ECB president Lagarde press conference
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.