Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
BOJ Holds Interest Rates Steady, Upgrades Growth and Inflation Outlook for Japan 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
Over the past several weeks, the financial markets have steadily reduced their expectations for a third hike in December. However, a key influential policymaker and a permanent member of the FOMC committee, New York Fed Governor William Dudley believes that the market is misjudging the possibility of a hike.
In an interview with Associated Press (AP), against a question with related to Fed hike odds for December declining below 50 percent, Mr. Dudley said, “I think it depends on how the economic forecast evolves. If it evolves in line with my expectations, I would expect -- I would be in favor of doing another rate hike later this year.” Since his thinking most of the time aligns with that of Fed chair Janet Yellen, financial markets have picked up his comments as a strong hawkish signal. He has been a major dove last year.
After his comments, the dollar strengthened and the hike odds for December improved. However, the financial markets are still not ready to price a hike in December. December hike off is currently at 49.3 percent, higher by a little more than 12 percent since the comments.
