FX News Today
- Fed officials continue to pledge patience after Fed Chair Powell noted the balance sheet will be “substantially smaller”.
- ECB minutes confirmed decision to end QE was unanimous.
- On the growth risks, there seems to have been a debate on the impact of weaker confidence indicators, with some mixed views.
- The Central banks are increasingly wary of downside risks and their cautious messages support both stock and bond markets.
- US equities stumbled after trade talks ended with few details for all the prior rejoicing, while a handful of year-end stumbles in the retail sector were noteworthy.
- European stock futures are moving higher, after a largely positive session in Asia overnight.
- US futures are also clawing back overnight losses with cautious comments from Fed and ECB officials supporting both bond and stock markets.
- WTI crude is holding gains and trading at USD 52.56 per barrel.
Charts of the Day
Main Macro Events Today
- UK Manufacturing & Industrial Production – Expectations –Industrial output is expected to have recouped 0.2% m/m after dropping 0.6% m/m in October, while the y/y figure should come in at -0.7%. Manufacturing production should rise to 0.3% m/m, after the fall to 0.9% last month due mainly to weakness from transport equipment.
- US CPI and Core – Expectations – It is widely anticipated that we will see an energy-depressed -0.1% reading for headline CPI in December, but a warmer 0.2% gain for core prices.
Support and Resistance Levels
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