| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 01:30 | China | PPI y/y | December | 12.9% | 11.1% | 10.3% |
| 01:30 | China | CPI y/y | December | 2.3% | 1.8% | 1.5% |
| 05:00 | Japan | Eco Watchers Survey: Current | December | 56.3 | | 56.4 |
| 05:00 | Japan | Eco Watchers Survey: Outlook | December | 53.4 | | 49.4 |
During today's Asian trading, the US dollar rose slightly against major currencies, following a moderate decline the day before.
The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose by 0.07%.
Traders are waiting for key US inflation data for December, which will be published at 13:30 GMT. Analysts on average expect that the consumer price index in December increased by 7% year-on-year and by 0.4% compared to November. In November, consumer prices in the United States rose by 6.8% year-on-year, the fastest pace since 1982.
Meanwhile, Fed Chairman Jerome Powell confirmed yesterday that this year is likely to be the year when the Fed normalizes its policy. He said that, in his opinion, the Fed will stop asset purchases in March, raise interest rates during 2022, and may also start reducing the balance sheet at the end of the year. However, Powell then pointed out that the Fed has not yet approved a timeline for any of the normalization processes.
The Fed chairman also said that the price increase is associated with a mismatch between supply and demand, adding that the Fed uses all its tools to prevent higher inflation from taking hold. According to Powell, inflationary pressures will ease over time, but the question is how quickly this will happen. He also warned that the Omicron strain could lead to a slowdown in hiring and economic growth, but this would be a short-term phenomenon.
Goldman Sachs experts expect the Fed to raise the rate four times this year and begin reducing the amount of assets on the balance sheet in July.