The next 24 hours will be extremely busy. The highlight will no doubt be the Federal Reserve announcement which arrives at 7 pm tonight. There will also be a number of tier 1 data releases from the UK, eurozone, and US beforehand.
The Federal Reserve are not expected to make any major changes to policy but may opt to extend the maturity of some of their asset purchases. Such a move would act as a small boost in stimulus as it’s keeping Fed money in the financial system for longer. In reality, it’s very likely the Fed steer the ship’s course and, as usual, remind markets that they are monitoring the economy and will act as necessary to support them.
On the data front, the day kicks off with UK inflation numbers at 7 am. Following this, we’ll observe both eurozone and UK December flash PMIs. In the afternoon session, the US will release their highly anticipated November retail sales report while Canadian inflation data is on tap too. Brexit may also feature today after rumours of an imminent deal sent the pound higher on the day.
8:22am, December 16th 2020
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