MUFG Research expects a pick-up in volatility next week on 5 central banks hikes and the US CPI report.
"It is highly likely we will get a slowdown in pace from the Fed with a 50bp hike. We expect 50bp rate hikes from the ECB and BoE as well – all announcing their decisions next Thursday. Norges meets on Thursday also and have already stepped down to 25bp moves and we expect another 25bp hike...
The SNB also meets next Thursday and given the SNB only meets every quarter there is a greater risk that we do not get a slowdown in pace and another 75bp rate hike is possible. But a stepdown to a 50bp hike seems more likely given the inflation data is much lower in Switzerland than elsewhere," MUFG notes.
"Next week offers obvious potential for a pick-up in volatility as we approach year-end but assuming we do get a major CPI shock next week, market pricing seems reasonable based on what we expect from the major central banks next week," MUFG adds.