Market movers today
Today's main event is the FOMC meeting . It is one of the big meetings where we get updated projections and 'dots'. In line with consensus, we expect the Fed to raise the target range to 1.25-1.50%, which by itself should not have a great market impact. What is more important is the updated 'dots', but we expect the FOMC to still signal three hikes in 2018. For more details, see our FOMC Preview - Third hike and unchanged dot signals .
In the US , CPI numbers for November are due. We estimate CPI core rose 0.2% m/m (1.7% y/y versus 1.8% y/y in October). In our view, it is likely that headline inflation increased significantly more given the large increases in fuel prices and we estimate an increase of 0.4% m/m in November (2.2% y/y versus 2.0% y/y in October).
In the UK , the labour market report for October is due to be released, where we expect a further drop in the unemployment rate to 4.2%. It is likely to be accompanied by continued modest growth in average weekly earnings of 2.2% y/y, meaning that real wage growth will continue to be negative.
Also in the US , President Trump is expected to deliver a speech on US tax reform.
In Germany , party leaders from SPD and CDU/CSU will meet today for first exploratory talks about a possible governing coalition.
In the UK , discussions on the government's EU withdrawal bill, which repeals the European Communities Act 1972, continues today. The opposition and Conservative rebels want a meaningful vote in Parliament on the final Brexit deal and PM Theresa May might have to give some concessions here.
In Sweden , Prospera is due to release its quarterly inflation expectations survey this morning (see next page).
To read the entire report Please click on the pdf File Below: