Daily Update - 12th December 2017
Yesterday’s Market Yesterday’s explained Amidst no economic reports being released, the Euro edged lower against the greenback on Monday as greenback recovered from its early weakness before the Federal Reserve is expected to hike rates on Wednesday. When the U.S. central bank concludes its two-day December policy meeting, investors will be watching for concern about low inflation from Fed officials and any indications that this may make further rate hikes next year less likely. The greenback pared losses as U.S. treasury yields rose back from morning lows, which were reached safety buying after an explosion rocked one of New York’s busiest commuter hubs. Sterling declined against the dollar on Monday as investors cautiously added some long bets in a week when Britain and the European Union will sign off on a deal to move to the next stage on Brexit talks. The British currency was choppy in early trading in a potentially big week with a central bank meeting scheduled on Thursday and a raft of top-tier data including Retail sales, Inflation and jobs data also due this week. Sentiment on sterling has improved slightly and investors have become a tad more hopeful for the short term, though trading has remained choppy since Prime Minister Theresa May managed to break the deadlock on Friday. Today’s Market Today’s Focus Today’s economic data out of the Eurozone this morning includes French nonfarm payrolls for the 3rd quarter, together with December ZEW economic sentiment figures out of Germany and the Eurozone. The numbers are forecasted to be on the softer side, though any better than forecasted figures will be a boost for the EUR ahead of Thursday’s ECB interest rate decision and press conference. For the Pound, November inflation figures will be one of the key drivers through the day. Across the Pond, it’s a relative quiet day on the data front, with stats limited to November producer price index numbers out of the U.S. While we will expect the Dollar to respond to the figures, focus will remain on tomorrow’s FOMC interest rate decision, economic projections and press conference, with a rate hike now largely baked into the Dollar. Also, ECB President Draghi’s comments may determine positive or negative the Euro's trend in the short-term.
