December 18th sees a flurry of crucial data releases! The European Central Bank's decision on the deposit facility rate is looming, with the market expecting a 99% probability that the rate will remain unchanged at 2% for the fifth consecutive month, raising concerns about future interest rate hikes; the US CPI data for November is also set to be revealed, with institutions predicting that the unadjusted annual rate may rise to 3.1%, while the month-over-month adjusted rate is expected to increase by 0.3%, making core inflation a key indicator for policy direction; additionally, the number of initial unemployment claims in the US for the week ending December 13th will be announced, following a previous week that saw the largest single-week increase since the pandemic, drawing attention to signs of a cooling labor market. Multiple data points will simultaneously stir expectations for monetary policy in Europe and the US, presenting a critical test for global financial markets.
