OANDA Senior Market Analyst Kelvin Wong joins Jonny Hart to discuss this week’s key economic events that focus on the monetary policy decisions of key central banks; Fed, ECB, and BoE. Monetary policy officials may challenge the current aggressive dovish expectations on the trajectory of interest rate cuts for 2024. The primary focus will be on the release of the latest Fed’s dot plot on Wednesday, 18 December together with the FOMC monetary policy meeting outcome; Fed funds interest rates futures based on CME FedWatch tool calculation have indicated a total of four cuts of 100 basis points (bps) in 2024, twice the amount of rate cuts projected by the last Fed officials’ dot plot forecasts released in September’s FOMC meeting.
Also, FX traders will be keeping a close watch on Japan’s flash Manufacturing and Services PMIs for December to decipher the current state of Japan’s economy after surprise hawkish remarks made by BoJ top officials last week that have increased the expectations of the removal of short-term negative interest rate in early 2024.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at email@example.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.