UK Consumer Price Index (NOV) (09:30 GMT; 04:30 EST)
                          (MoM)                    (YoY)
Consensus:         0.2%                      1.5%
Previous:             0.2%                      1.4%

Outlook:  UKââ,¬â"¢s Consumer Price Index, an inflationary measure, is expected to grow by 2.6 percent in November, the biggest inflationary jump since 1997, and well ahead of the Bank of Englandââ,¬â"¢s (BoE) 2 percent benchmark. Price jumps are largely due to the boost in economic growth of Europeââ,¬â"¢s largest economy, particularly in the housing market. Consumers have dealt with exhaustive utility bills due to high energy costs, and the amassing property market continues to drive up housing prices. November Produce Price Indices for input and output prices have also risen, by 2.8 and 1.8 respectively, in effect passing on higher price levels to consumers. The decrease in purchasing power is illustrated by a drop in retail sales. Worrisome inflationary pressures have caused the Bank of England to raise interest rates for the second time this year, to 5 percent. Should prices continue to rise above the central banks desired 2 percent, the BoE may have to impose another round of monetary tightening.

Previous: UKââ,¬â"¢s yearly CPI for October rose by 2.4 percent, the same rate for the second straight month and 0.2 percent less than forecasted. The unexpected figure, resulting largely from low energy prices, eased the Bank of Englandââ,¬â"¢s anticipated decision to raise borrowing costs in the future. It also prompted the value of the pound to fall, and bonds to rise. Although below expectations, the figure is 0.4 percent above the BoEââ,¬â"¢s goal, illustrating inflationary pressure which may spark the BoE to impose another interest rate hike.

German ZEW (DEC) (10:00 GMT; 05:00 EST)
Consensus:         -25.0
Previous:             -28.5

Outlook:  Forecasts on German economic growth continue to show pessimism across a broad range of domestic industries, with the headline ZEW survey reading reaching 13-year lows through November. The impending Value Added Tax (VAT) increase and steadily rising borrowing costs have European investors doubting the potential expansion that will be seen through the coming year, but this stands in contrast with a markedly upbeat assessment of current economic conditions. Indeed, the ZEW Current Situation index continues to make new highs, with Novemberââ,¬â"¢s reading showing that close to 80 percent of investors feel that business is improving through the short term. As it relates to tomorrowââ,¬â"¢s economic release, many analysts feel that outlook can only grow better through the final month of the year. Euro bulls will likely need a positive result for the single currency to regain upward momentum against its major counterparts.

Previous: The German ZEW Economic Sentiment number continued lower through November, with the outlook index registering at 13-year lows on the month. This prompted a more bearish outlook on the future of broader Eurozone growth but stands in contrast with IFO confidence readings. The competing survey actually showed improved optimism through the same month, which begs the question of legitimacy to the ZEW figures. Regardless, investors will continue to monitor upcoming ZEW figures to gauge the direction of investor confidence, with any further fall to prove bearish for the broader Eurozone. It serves to mention, however, that the IFO survey is often seen as more reliable because of a much larger sampling size. Officers of the ZEW institute survey approximately 350 executives and analysts for their report, while the IFO derives their information from about 7,000 respondents. We tend to favor the latter confidence number simply on the basis of statistical significance.

US Trade Balance (OCT) (13:30 GMT; 08:30 EST)
Consensus:          -$63.0B
Previous:              -$64.3B

Outlook:  The US trade account is expected to show its slimmest deficit in seven months when the October indicator hits the newswires.  Predicted to contract to a $63 billion shortfall, the level of the trade account will likely fall on the dramatic change in energy prices.  Crude oil prices leveled out in October around $60 per barrel, following two months of steep declines.  This drop in energy prices has already revealed its effects on imports through the price index.  Octoberââ,¬â"¢s import price gauge dropped 2.0 percent, following a similar 2.0 percent drop the month before.  Together, the back-to-back decline in the inflation gauge was the biggest on records going back to 1989.  Furthermore, when petroleum products were excluded from the mix, the value of foreign goods purchased State-side still eased 0.6 percent, the most since February.  One indicator that could act as a hurdle to an improved trade account in October and the months following though is the durable goods orders report for the same month.  The advanced bookings gauge plunged 8.2 percent for single largest monthly decline since July 2000.  Whatââ,¬â"¢s more, the exclusion of the transportation complex had also marked its biggest decline since July of 2005, suggesting the demand for the core group domestically and abroad was on the wane.  With energy prices markedly lower than only a few month before and China taking steps to rein in explosive levels of growth, the market will look for the trade account to naturally improve.  If this does not come to pass, concern over the seemingly ever-present trade account could rise to the top once again.

Previous: The goods and services trade balance saw its biggest improvement in nearly two years in September as foreign demand grew along with economic expansion and the cost for imported crude was depressed.  The biggest influence for the month on the balance was wielded by energy products.  Crude prices for the month dropped nearly $10 per barrel to extend the contraction began since hitting an all-time high in mid-July.  Altogether, the value of total imports through September fell 2.1 percent to $187.5 billion, even as the shortfall with China ballooned to a fresh record $27.6 billion.  At the same time though, exports received a healthy boost through the month.  A record $123.2 billion value of shipments abroad marked a 0.5 percent increase, led by a $713 million worth of capital goods. 

Federal Open Market Committee (19:15 GMT; 14:15 EST)
Consensus:          5.25%
Previous:              5.25%

Outlook:   Monetary policy officials at the Federal Reserve are expected to keep the nationââ,¬â"¢s overnight lending rate untouched for the fourth consecutive meeting.  Released well in advance of the policy meeting, the Beige Book reveals much of the data that Board members will concern themselves with when the vote is tallied.  The report October/November, which aggregates the regional branchesââ,¬â"¢ performance numbers, resembled much of the same seen in the previous report.  Moderate growth was underpinned by a strong consumer, while both service and manufacturing projections came in strong.   Also, the Fedââ,¬â"¢s economists remarked on the still tepid performance of the housing market while in contrast they noted the labor market remained tight.  While the general premise of these summations is still relevant going into the actually policy meeting, a few indicator could change the landscape of the discussion that will ensue.  First of all, while economic activity can still be argued as moderate, the recent revision of third quarter growth to a 2.2 percent pace of expansion from 1.6 percent could lift sentiment for those members that donââ,¬â"¢t like to work off of uncertain projections.  Otherwise, those who base policy around an outlook will pick up on the first contraction in manufacturing in three years, which will undoubtedly amplify the pressure exacted on the economy through the housing marketââ,¬â"¢s decline.  From inflation, what many consider the key to monetary policy in the US, the drop in the annual CPI figure to a more than four year low in October should hold the neutral course steady.

Richard Lee is a Currency Strategist at FXCM.