Look ahead: BoJ interest rate decision; RBA minutes; Canada inflation; FedEx
The Bank of Japan’s interest rate policy decision is the main event on the currency front this week.
While no change in policy is anticipated, many market watchers expect BoJ policymakers to start laying the groundwork for negative rates to be scrapped. Watch out for inflation figures from Canada, and FedEx is expected to report a 1.8% fall in revenue.
(AI Video Summary)
Focus on the central banks
In today's Look ahead episode, Angeline Ong talks about the things that might affect the market on 19 December. She starts by focusing on the central banks and discusses the release of minutes from the Reserve Bank of Australia's last meeting. She mentions that real estate stocks in Australia fell after the New York Federal Reserve president said that a rate cut might not happen soon. But, the decline was balanced out by an increase in mergers and acquisitions. Ong also mentions that there is a growing chance that the Australian dollar might fall against the US dollar in the near future.
Bank of Japan's interest rate decision
Next, Ong talks about the Bank of Japan's interest rate decision, which is considered the most important event in Asia for the week. She points out that many economists believe that this decision might lead to negative interest rates being scrapped, making the Bank of Japan one of the few central banks in the world to tighten its policy. She also shows a chart that indicates the Japanese yen has moved away from a level that is considered significant and indicates possible intervention.
Inflation figures from Canada
Inflation figures from Canada are also expected. Ong mentions that Canada was one of the first countries to raise interest rates, and it will be interesting to see the effects of their policies. Additionally, she highlights the upcoming API crude oil inventories from the US and earnings from FedEx. She mentions that FedEx is expected to report a decline in sales and that its performance often reflects the performance of other industries.
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