The fed – the main intrigue of the week
Until the end of the year only two weeks, and that current promises to be the most interesting for investors foreign exchange and stock market, because key events, the results of which will be announced on Wednesday, 19 December at 22:00 Moscow time. We are talking about the results of the meeting of the Federal open market Committee (FOMC) of the fed.
The meeting will be followed by a press conference of Mr. Jerome Powell, current fed Chairman. Intrigue from the outcome of the meeting, do not expect to the moment the futures for the Federal funds demonstrate a figure of 72.3% in favor of a rate hike to 2.25-2.5 per cent in the December meeting.
However, investors will carefully listen to comments about Powell near “neutral” level of rates, as is currently the greatest intrigue is the number of expected levels of rate increases in 2019 as the market lays in the price, 2 rate hike in us in 2019, if they plan more, then this works in favor of short-term growth of the US dollar across the entire spectrum of the market.
The focus of market participants continues to be the situation around the British exit from the EU (Brexit). The weekend saw several posts on this subject, but distinct specifics on this issue there is still. But as we approach the boundary date of the alleged Brexit (March 29), the greater the number of reports that it can not take place and to be canceling.
So, former Prime Minister Tony Blair warned that Britain and the EU must prepare for the second referendum, based on the fact that Parliament probably never will be able to negotiate and make a deal previously reached during the talks, Theresa may with the EU. It is doubtful that a second referendum will lead the country out of political deadlock, what the Prime Minister said Theresa may.
The key event of Monday will be the release of inflation figures in the Eurozone, scheduled for 13:00. In case of substantial discrepancies with the predictions, which are currently estimated CPI in November at 2%, the Euro has the potential to decline to 1,1217 to the dollar if the figure will come in below expectations. In case, if inflation rose more than expected, Albania Euro currency will serve as 1.1460 on EUR/USD.
“International financial center”