📣 Markets Watch: Central Banks, Labour & Inflation Reads (Dec 15–21, 2025)

What to Watch This Week: Key Events: This week is packed with market-moving central-bank decisions and major inflation and labour data — potentially setting the tone into year-end. With several policy meetings and headline prints concentrated in the first half of the week, markets may see heightened volatility as traders reassess expectations for global monetary policy trajectories and inflation trends.

 Key Global Economic Events to Watch (Dec 15–21, 2025)

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📌 Additional Factors to Monitor

• Major central banks — especially the Bank of England, ECB, and BoJ — are on deck this week. Tone and guidance from these meetings may reshape expectations for monetary policy in 2026.
• The delayed U.S. CPI and labour data are now being released in this window, offering fresh insight into inflation and employment momentum that were previously obscured by reporting gaps.

🧭 Under-Radar / High-Importance Signals Ahead

• Bank of England’s decision — markets widely expect a rate cut, but mixed UK data and geopolitical pressures could lead to a less dovish or more cautious stance, impacting GBP and gilt yields.
• U.S. CPI and PCE prints could materially influence Fed expectations heading into 2026, especially given the Fed’s recent “data-dependent” messaging.
• ECB guidance — even if unchanged on rates, the ECB’s forward guidance amid slowing European growth will matter for EUR pairs.

🔎 Key Themes for the Week

• Policy Clarity vs. Uncertainty: Central-bank decisions remain the dominant theme — any surprise in guidance, even with unchanged rates, can shift yield curves and FX pricing.
• Inflation Reassessment: With multiple major CPI prints (UK, US, Canada), markets may revisit price pressures globally — influencing inflation-linked yield products and real return positioning.
• Cross-Asset Sentiment: Early Asian data (Japan Tankan and China releases) may set the tone for risk sentiment globally, potentially affecting equities and commodity FX ahead of Western policy decisions.

🧭 Under-Radar for Next Week (Dec 22+)

• December 22–23 U.S. Advance GDP Estimate & year-end inventory data — unexpected readings here may influence positioning this week.
• Broad month-end rebalancing flows as 2025 closes can amplify moves in FX and fixed income; any early positioning shifts this week could be a prelude to year-end dynamics.

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