The evening session wraps up soon with National CPI figures from Japan releasing promptly.
Market expectations are for the National CPI YoY to remain steady at 3%. This inflation report tends to move markets less than the Tokyo CPI FYI.
But the most important event of the Evening largely remains the Bank of Japan (BoJ) Interest Rate Decision.
The BoJ is widely expected to deliver a 25 basis point hike, raising the benchmark rate to 0.75%—its highest level in nearly 30 years. Communications from the BoJ will be closely tracked in the current doubts about the Central Banks’ ability to show strength against a very stimulatory Government.
Tomorrow’s session (Friday, December 19) will also present an intense finale to an already busy week as year flows can be expected to strongly calm down for the following weeks.
The 02:00 A.M. European stretch drops high-impact Retail Sales data for the UK, with the market looking for a rebound to 0.4% MoM following a previous contraction.
The North American session 8:30 A.M. ET starts with Canadian Retail Sales. The market is bracing for a flat 0% MoM reading for October.
Finally, the 10:00 A.M. stretch brings the US into the spotlight with Existing Home Sales and the final Michigan Consumer Sentiment figures.
Traders will focus on Inflation Expectations, currently penciled in at 4.1% for the 1-year outlook, to see if consumer sentiment finally aligns with the Fed’s cooling goals.
Safe Trades!
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