Markets face a crucial week before the festive break, with top-tier data releases taking center stage despite thinning liquidity. US GDP, jobless claims, Philly Fed Manufacturing Index, and Canadian retail sales all due throughout the week. UK retail sales data on Friday offers another peek into consumer spending.

December 19, 2023:

• RBA and BoJ Minutes: Investors scrutinize central bank insights after rate decisions. RBA likely to reiterate data-driven stance, while BoJ may hint at future policy shifts.
• Canadian CPI: Inflation expected to dip below 3%, potentially influencing Bank of Canada’s policy outlook.

December 20, 2023::

• UK CPI: Inflationary pressures likely to ease slightly, but BoE remains cautious, keeping door open for further tightening.
• US Consumer Confidence and Existing Home Sales: Key gauges of consumer sentiment and housing market health.

December 22, 2023::

• Core PCE Price Index: The Fed’s preferred inflation measure takes center stage. A dovish reading could bolster equity and bond markets, while a surprise could boost rate cut expectations and weaken the dollar.