Financial markets are preparing for crucial economic data, primarily U.S. inflation!

The financial markets are witnessing the release of important economic data this week, which is expected to contribute to determining the trends of major currencies, including the US dollar, the euro, and the British pound. This data will also influence commodity movements, such as oil and gold, as well as digital currencies and US stocks.

Here’s a look at the key upcoming data this week:

Interest Rate Decisions in Australia

The Reserve Bank of Australia will announce its interest rate decisions on Tuesday, December 10, at 3:30 AM GMT. The bank is expected to keep the interest rate at 4.35%. Any statements or signals regarding future policies could lead to noticeable volatility in the AUD-USD currency pair, as investors will look for hints regarding the path of interest rates in the upcoming period.

US Inflation Data

On Wednesday, December 11, the US inflation report will be released at 1:30 PM GMT. Inflation data is considered one of the most important indicators relied upon by the US Federal Reserve in making monetary policy decisions, as expectations indicate that inflation may rise to 2.7% for November. A reading higher than expected could strengthen the US dollar, while data lower than expectations could weaken the dollar and lead to a decline in its index.

Canadian Interest Rate Decisions

The Bank of Canada’s interest rate decisions are expected on Wednesday at 2:45 PM GMT, with predictions pointing towards a possible cut of 50 basis points. This decision will have a significant impact on the market, particularly on the movement of the Canadian dollar and its various pairs, necessitating close monitoring of Canadian market movements.

Australian Employment Data

Australian employment data will be announced on Thursday, December 12, at 12:30 AM GMT. Expectations indicate an increase in the unemployment rate to 4.2%, with the potential addition of around 26,000 new jobs. Positive data could bolster the Australian dollar, while weak data may lead to reduced expectations for interest rate cuts, negatively impacting the Australian currency.

Swiss Interest Rate Decision

The Swiss National Bank will make its interest rate decision on Thursday, amidst expectations of a 25 basis point cut, bringing it to 0.75%. This decision will result in noticeable movements in Swiss franc trading, particularly in the main currency pairs, which will attract significant attention from investors.

European Interest Rate Decisions

The European Central Bank will announce its interest rate decisions on Thursday, December 12, at 1:15 PM GMT, with the possibility that the bank may reduce the rate to 3.15%. If this scenario materializes, it will have noticeable effects on euro trading and impact the overall stability of European markets.

The upcoming economic data will be pivotal in determining the future monetary policies of several major central banks, and its impact will be evident in trading of major currencies, commodities, stocks, and cryptocurrency markets, necessitating careful monitoring of market movements in the coming days.

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