Market Insights Podcast – Big week on interest rates as Fed, BOE, ECB looms together with US CPI, Japan flash PMI

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.

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