The US dollar appreciated during the week as the tax reform inched closer to reality. Fundamental data in the US was positive for the currency but hourly wages again disappointed by coming below expectations. Given the importance of inflation indicators inside the Fed stagnant wages could make it hard on the US central bank to keep raising rates in 2018.
The economic calendar is packed on the week of . Inflation data in the US will be published by the Bureau of Labor Statistics on Core CPI is expected to gain 0.2 percent but prices taking into consideration food and energy are forecasted to increase by 0.4 percent.
The U.S. Federal Reserve will release its quarterly economic projections and Federal Open Market Committee (FOMC) statement on
. The highly anticipated December meeting of the Fed is expected to bring a 25 basis points rate hike. The market has already priced in that move as it was heavily telegraphed by policymakers. Economists are forecasting 3 rate hikes in 2018 and the dot-plots could align with those estimates. Fed Chair Janet Yellen will make her final appliance as Chair when she hosts the FOMC press conference at .
The Bank of England (BoE) will release its monetary policy summary on . There is no change expected to the UK benchmark rate which stands at 0.50 percent. The European Central Bank (ECB) will follow close by with their release of their rate statement at . ECB President Mario Draghi will host a press conference at . The ECB is not expected to change its QE program or interest rates at this time, but the market will be on the lookout for its 2020 growth and inflation forecasts