Maybe this trading week is just a case of “let's just give this a go and be done with it, shall we?” in the markets.
Everyone knows what is almost certainly going to happen but it is a matter of waiting for the main events and getting a glimpse of what these central banks will do in the next year.
The biggest one is of course the Fed and traders are pricing in ~94% of a 25 bps rate cut on Wednesday. After that, they expect to stop for January. Therefore, market players will definitely be looking for something with the Fed and Powell to reconfirm these views.
As for the BOE and BOJ, they are both expected to leave interest rates unchanged on Thursday. The former has been teasing a hiatus for a while now while the latter saw leaks last week that basically confirmed the move.
Although we have some key economic data lined up in the coming days, the central bank bonanza is what everyone is still here for. Otherwise, maybe we'd all be better off getting ready for the Christmas break already.
So, buckle up and hold that focus for just a little longer. This is the last real trading week of the year.
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