While we look ahead to the BoJ meeting (19 Dec) and keep a vigil on headlines from local press on potential policy tweaks, this week it's not hard to find tier-one catalysts and event risk for traders to navigate their exposures over. On the central bank side, we look for guidance from the Fed, the ECB, the BoE, Norges Bank and the SNB. For traders who focus on the higher beta LATAM FX - MXN and BRL - we get the Banxico and BCB meetings.

The final ECB meeting of the year should result in all three policy rates remaining unchanged, including the deposit rate being held at a record high 4.00%. Nevertheless, as eurozone growth becomes increasingly fragile, and the pace of disinflation quickens, focus is rapidly shifting to the matter of when, and by how much, policymakers will seek to cut rates over the coming twelve months.

The final MPC decision of the year should see the Committee vote to maintain Bank Rate at its present 5.25% level, with the last hike of the cycle having been delivered back in August. Focus, therefore, will again fall on the language that the MPC use in relation to forward guidance, particularly the duration at which Bank Rate will remain at its terminal level, with markets continuing to price an aggressive pace of rate cuts, from H2 24 onwards.