This trading week might just be a case of "let's get this over and done with, shall we?" in markets.
Everyone knows what is almost certainly going to happen but it is a case of waiting the main events out and getting a glimpse of what these central banks will do going into next year.
The biggest one of course is the Fed and traders are pricing in ~94% odds of a 25 bps rate cut on Wednesday. Then after, they are expecting a pause for January. So, market players will definitely be looking for something by the Fed and Powell to reaffirm said sentiment.
As for the BOE and BOJ, they are both expected to leave interest rates unchanged on Thursday. The former has been teasing a pause for a while now while the latter saw leaks last week that basically confirmed the move.
While we do have some key economic data lined up in the days ahead, the central bank bonanza is what everyone is still here for. Otherwise, we'd all probably be better off preparing for the Christmas holidays already.
So, buckle up and keep that focus for just a bit longer. It's the final real trading week of the year.
This article was written by Justin Low at www.forexlive.com.
Everyone knows what is almost certainly going to happen but it is a case of waiting the main events out and getting a glimpse of what these central banks will do going into next year.
The biggest one of course is the Fed and traders are pricing in ~94% odds of a 25 bps rate cut on Wednesday. Then after, they are expecting a pause for January. So, market players will definitely be looking for something by the Fed and Powell to reaffirm said sentiment.
As for the BOE and BOJ, they are both expected to leave interest rates unchanged on Thursday. The former has been teasing a pause for a while now while the latter saw leaks last week that basically confirmed the move.
While we do have some key economic data lined up in the days ahead, the central bank bonanza is what everyone is still here for. Otherwise, we'd all probably be better off preparing for the Christmas holidays already.
So, buckle up and keep that focus for just a bit longer. It's the final real trading week of the year.
This article was written by Justin Low at www.forexlive.com.