Key events and economic reports for the week ahead
There will be plenty of fundamental events next week that promise extremely high volatility in FX and equity markets and will possibly lead to emergence of market trends that will span into the new year.
On Tuesday, investors will watch for the US and German November CPI figures, ZEW index in Germany and OPEC oil report. The US November CPI is especially interesting in light of the fact that consumer inflation in the US unexpectedly slowed in October, but the Fed indicated that drawing conclusions from one month of benign data is premature. In inflation comes down for a second month in a row that may indicate emergence of a trend and may be a good reason to expect much rumored Fed policy pivot.
On next Wednesday, UK CPI report is due as well as industrial production in the EU for October. The data is of average importance, however, for example, UK CPI should help to understand what to expect from the Bank of England next Thursday.
The Fed will hold a policy meeting next Thursday which is especially interesting due to the fresh Dot Plot release, which is very important as it will shed light on what the Fed think its policy will be in 2023 and later. Also, on this day other key central banks will hold policy meetings such as the ECB, the Swiss Central Bank and the Bank of England.
On Friday markets will watch for the CPI report in the Eurozone, PMI indices in the services and manufacturing sectors from S&P Global in the US, as well as activity indices in the services and manufacturing sectors of France, Germany and the UK.
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