As the year 2018 draws to a close, economic events are on the fire. Markets are looking at a number of important economic events that will determine the course of financial markets in the coming period, led by the trade conflict between the world's two largest economies with increasing doubts about the ability of the United States and China to resolve their differences after a 90-day truce after talks on the sidelines of the last 20-nation summit.
Markets are cautiously watching the British parliament vote tomorrow on the British Prime Minister Theresa May's agreement with the European Union. The future of May as a prime minister is clouded if this agreement is rejected and she is due to speak after minutes about parliament's vote on the Brexit under The news on the postponement of the vote putting further pressure on the Sterling Pound.
Also, the markets are looking at US inflation data as the CPI is expected to rise by 0.1% in November after rising by 0.3% in October and on an annualized basis, is expected to rise by 2.2%, down from 2.5%.
This slowdown would refer to the Fed need to slow the rate hike in 2019. The Federal Reserve is expected to raise rates for the fourth time this year when they are meeting next week.
The markets are also waiting for the ECB meeting this week as it is expected to announce the end of its 2.6 trillion euro bond purchase program, which it started three years ago. Market expectations for the ECB rate hike in 2019 are now 75% higher % after it was 100% weeks ago.
