Inflation data and Fed meeting are the main events of this week

The November inflation data, which will be under close attention on Tuesday, will show a potential to increase in interest rates in 2023.

Wednesday's Fed meeting is highly likely to entail the seventh and final rate hike of the year.

Economists' forecasts are associated with a slight slowdown in headline inflation by 0.3% in November. In the previous month, this reading was 0.4%. In addition, the Consumer Price Index is expected to grow by 7.3% year-on-year in November, down from October's 7.7%.

It is predicted that core CPI, which excludes food and energy components, will increase by 6.1%, slightly below October's 6.3%.

The Fed may raise rates by 0.5% on Wednesday, a slowdown from the 0.75% increase achieved during the last four meetings.

Most likely, the head of the Fed does not intend to stop the tightening policy earlier than current projections suggest. It is assumed that Jerome Powell will continue to oppose the concept of "pivot". However, lower inflation may have a positive effect on the rhetoric of policy change, thereby outweighing any "hawkish" statements by Powell.