Market movers today
At the meeting today, we expect the FOMC to remove considerable time from the statement, which should put upward pressure on short US rates and support the USD. The FOMC is likely to revise down its unemployment and inflation projections for next year but more interesting will be changes in the dots reflecting individual members' projections of the Fed funds rate.
In Greece the first vote out of three in the presidential elections is scheduled for today. In the first two rounds 200 out of 300 votes are needed, whereas 'only' 180 are required in the third (29 December). We do not expect a president to be elected today, which could have a negative market impact even though there are two more rounds.
In the US we expect headline CPI and core inflation to decline with the largest decline in headline inflation, as it is driven down by the drop in gasoline prices. Final euro HICP inflation is also due for release and there is a small risk that it will be revised down to a new cycle-low of 0.2% y/y.
In the UK the ILO unemployment rate should decline, while average earnings are expected to increase. Bank of England will also publish minutes from the MPC meeting.
In Denmark, Q3 property prices are scheduled for release.
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