As this is the last big week in data before the markets wind down for the festive period. We have a few Central Bank Announcements. The Fed announcement tonight is the event that has Craig, Senior Market Analyst from OANDA, most interested. It is the biggest of Central Bank announcements according to Craig, as something is actually going to happen. He says that the rate hike is practically already priced in. We may see some volatility around it however.

Not only will we see a Rate Hike but we will get economic projections for 2018 also. Are we going to see more rate hikes? What about inflation? growth? Will expectations drop lower? We will also hear from Janet Yellen. How are the markets going to interpret all of this? How will the markets react?

Craig Erlam also discussed the effect of the change of Fed Chair in February. He says there is lot to take from tonight. He thinks we will see volatility and it will be interesting how markets respond.

Also touched upon is the tax reforms and any effect they could have on the market. Craig thinks if we see tax reforms we could see three or four rate hikes next year. Markets are currently pricing in one or two.

Discussed further is Bitcoin. Will it crash? It is a bubble? Craig shares his view on the cryptocurrency.

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