Fed May End Tightening, Expects Lower Borrowing Costs

Wednesday, 17 Jan, 09:00 – UK CPI (YoY) (Dec)

In November, the UK’s Consumer Price Index (CPI) rose 3.9% year-over-year, down from October’s 4.6% surge. Expectations for a modest decrease to 4.3% were surprised by the decline, prompting speculation about a potential interest rate cut by the Bank of England in 2024, which is now highly anticipated.

Wednesday, 17 Jan,15:30 – US Retail Sales (MoM) (Dec)

In November, US retail sales increased by 0.3%, surpassing the market consensus of -0.1%. This rise was attributed to increased consumer spending at restaurants, online stores, car dealerships, and other retail outlets. While Federal Reserve officials anticipate a significant slowdown in economic growth in the coming year, they do not anticipate a recession.

Friday, 19 Jan,17:00 – US Existing Home Sales (Dec)

In November, existing home sales in the US unexpectedly rose to 3.82 million, surpassing the market’s 3.78 million expectation. This increase is part of a trend showing housing market improvements. The Federal Reserve has signalled the conclusion of the tightening of monetary policy, with the potential for lower borrowing costs ahead.