Thursday, December 14
08:30 to 13:15 GMT
The three major central banks in Europe are expected to keep their policies unchanged on Thursday. The BOE has indicated a prolonged hold on the current rate, and the ECB has recently paused, with market expectations ruling out another hike. Consistently weak economic data has seen traders anticipate an ECB rate cut next year, lifting the DAX to reach fresh record highs. Similar to the Fed, a slightly dovish tone from the ECB is likely needed to justify the repricing for cuts. However, if the ECB doesn’t signal such a move next week, this may support the euro and exert some downward pressure on the DAX.
What to watch: GBP, EUR, CHF, Germany 40, UK 100