Look ahead: USD on CPI; GBP on UK jobless rate; German ZEW; Australia confidence data
Ahead of three major central bank decisions, watch out for US inflation data on Tuesday.
Consumer and business confidence readings are set to dominate in Germany and Australia. Plus, watch the pound ahead of unemployment figures in the UK.
(AI Video Summary)
Australia and US to release key figures
In this video, Angeline Ong gives a quick overview of the important economic events happening on Tuesday 12 December. She starts by mentioning that Australia will be releasing consumer and business confidence figures. However, the most significant event of the day is the release of inflation figures from the United States, which she will talk about later.
UK unemployment rate
Moving on to the UK, Ong explains that unemployment rates for October are expected to be around 4.3%. She also notes that the value of the British pound has been strong against the Euro recently because the market expects the European Central Bank to cut interest rates. This creates a difference with the Bank of England, and raises questions about which bank will cut rates first and influence others to do the same.
European Central Bank and Fed rate cuts
Ong goes on to say that money markets are already anticipating more than 140 basis points of rate cuts by the European Central Bank next year, starting in March. The Federal Reserve (Fed) in the US is expected to make similar moves around the same time. Tuesday's inflation figures will be crucial in determining whether the Fed's fight against inflation is over and if talks of a rate cut as soon as March are premature.
There are also other events worth noting, such as the release of the ZEW economic sentiment reading for December from Germany and API crude oil inventories. Ong concludes by mentioning that three central banks will decide on interest rates later in the week.
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