All Eyes on the FedDecember 17, 2013 Posted by: Joe O'Leary
As the Fed begins its two-day policy-meeting on Tuesday, market participants in general expect no major policy change, but the Fed could start to lay the groundwork for a reduction in the Fed's economic stimulus that could occur in the first quarter of the year. The Australian dollar, meanwhile, fell to a 3-1/2 month low, after the release of the minutes of the Reserve Bank of Australia's Dec. 3 policy meeting. The RBA said the Aussie is still uncomfortably high despite the fact it has weakened noticeably over the past month. The Indian rupee fell with traders awaiting the outcome of the central bank's policy review. The Reserve Bank of India is widely expected to raise its key repo rate by 25 basis points to 8.00 percent on Wednesday, its third such hike in four months after recent data showed both wholesale and retail inflation at multi-month highs. The USDJPY is trading near 5 year highs ahead of the Fed Meeting.
• U.S. NAHB homebuilder sentiment index jumped to 58 in December from 54 in November.
• US November overall-CPI was unchanged (median 0.1%), while the core index rose 0.2% (median 0.1%)
• Canada manufacturing shipments rose 1.0% in October, contrary to expectations (median -0.2%).
• German ZEW expectations highest since April 2006, with the reading for investor expectations jumping to 62.0 from 54.6
• U.K. CPI unexpectedly dipped to 2.1% y/y in November, down from 2.2% y/y in October
12/18 YEN: All Industry Activity Index (Nov.)
12/19 GBP: Retail Sales (Nov.)
12/19 USD: Existing Home Sales (Nov.)
12/19 USD: Leading Index (Nov.)
12/20 USD: GDP 3Q
12/20 EUR: Consumer Confidence (Dec.)
12/20 GBP: UK GDP (Q3)
12/20 CAD: CPI (Nov.)
12/23 CAD: Retail Sales (Nov.)
12/23 EUR: Consumer Confidence (Dec.)
S&P 1783.4Read More