While the Christmas lull is looming large, it is not there yet and surely won't be here next week. Investors are gearing up for the final 2022 rate decisions from 3 major central banks - Fed, ECB and BoE - with all three scheduled for next week. Apart from that, US CPI inflation data and flash PMIs from Europe will also constitute potential volatility triggers. Be sure to watch US100, EURGBP and DE30 next week!
US100
US assets will be on watch next week as two key events will take place. First, the US CPI report for November will be released on Tuesday, 1:30 pm GMT and it is expected to show deceleration in both headline and core price growth. The FOMC decision will be announced a day later on Wednesday, 7:00 pm GMT. Market expects a 50 bp rate hike and while CPI reading is unlikely to change it, it may have an impact on future outlook. Last but not least, FOMC will also release a set of new economic forecasts. Tech shares tend to be most volatile during FOMC announcements so US100 traders should stay on guard.
EURGBP
While the FOMC decision will draw the most attention in the week ahead, investors will also be offered rate decisions from other major central banks. BoE and ECB will announce their decision on Thursday at 12:00 pm GMT and 1:15 pm GMT, respectively. Both banks are seen hiking rates by 50 basis points at next week's meetings, which would be a deceleration from previous 75 bp rate hikes in both cases. However, recent data suggests that there is a scope for hawkish surprise from BoE but the decision is likely to be far from unanimous.
DE30
While European indices are likely to move on FOMC and ECB decisions, stock market benchmarks from the Old Continent may also move on Friday when flash PMI indices for December are released. As usual, attention in Europe will be mostly on data from France (8:15 am GMT) and Germany (8:30 am GMT). French data is expected to show minor deterioration compared to November's reading while German data is expected to show a minor improvement. However, in both countries manufacturing and services indices are expected to stay in contraction territory.
