We have a very thin calendar ahead of us today with virtually no significant data release in any of the major economies.
There will be some focus on the Catalan regional election taking place today. The election was called by Spanish Prime Minister Mariano Rajoy in October after the invocation of Article 155 of the Spanish Constitution of 1978, declaring the entire Catalan government removed from office. The last opinion polls showed a race too close to call with the main unionist and separatist parties were running neck and neck.
Today, the Czech Republic's central bank (CNB) will announce its decision on the policy rate. The CNB delivered a 25bp hike at its November meeting but, as this was anticipated by the market, we believe it is more important to watch out for the CNB's next step. Given some slightly disappointing data releases recently, we maintain the view that the CNB will keep rates unchanged at its 21 December meeting but move on with additional hikes in 2018. For more details on our latest views on key emerging markets, please see our latest Emerging Market Briefer which was published yesterday.
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