- German Final CPI: Tuesday, 7:00. Inflation has struggled in the eurozone’s largest economy, with declines for most of H2 of 2020. However, the forecast for December stands at 0.5%, which would be the strongest gain since June.
- UK Inflation Report: Wednesday, 7:00. After rising to 0.7% in October, CPI slowed to 0.3% in the November reading. The forecast for December stands at 0.5%. Core CPI improved to 1.1% in November and is projected to rise to 1.3% in December.
- Eurozone Inflation Report: Wednesday, 10:00. Headline inflation has reeled off four straight declines, and this trend is projected to continue in December, with an estimate of -0.3%. The core reading is expected to remain at 0.2%.
- Inflation Report: Wednesday, 13:30. Headline CPI slipped to 0.1% in November, down from 0.4%. Trimmed CPI, which excludes the most volatile items, has been steady and came in at 1.7% in November. We now await the December inflation numbers.
- BoC Rate Decision: Wednesday, 15:00. The Bank of Canada rate remains at a low level of 0.25%. There has been some talk of a shock rate cut this week due to the deteriorating Covid situation. However, the likelihood of such a drastic move remains low.
- ECB Rate Decision: Thursday, 12:45. The ECB minutes last week noted concern with low inflation and the high exchange rate, and policymakers could reiterate these concerns in the rate statement at the upcoming meeting. No change is expected in the current monetary policy.
- EUR/USD forecast – for everything related to the euro.
- USD/JPY forecast – projections for dollar/yen
- AUD/USD forecast – predictions for the Aussie dollar.
- USD/CAD forecast – Canadian dollar analysis
- Forex weekly forecast – Outlook for the major events of the week.