The dollar is continuing to sit slightly firmer so far in the new week. The advance today isn't much (yet) but it reflects a similar play to yester
The dollar is continuing to sit slightly firmer so far in the new week. The advance today isn’t much (yet) but it reflects a similar play to yesterday. This comes with the market focus shifting to tomorrow’s FOMC meeting.
The big question with regards to that is if we will see a more hawkish Fed come to fruition. In that sense, the Fed’s language, taper intent, and dot plots will be key things to scrutinise upon.
In the lead up to that, expect the market to stay on edge for the most part. There was a notable drag in Treasury yields and equities yesterday, as investors take on a more cautious approach.
Things are looking calmer so far today but don’t expect much in terms of any firm direction until after the Fed. We may see a continuation of the tentative mood but any real sense of where we’re headed next will depend on tomorrow.
0700 GMT – UK November claimant count change, rate
0700 GMT – UK October ILO unemployment rate, employment change
0700 GMT – UK October average weekly earnings
Prior release can be found here. The readings here are likely to reaffirm added improvement in UK labour market conditions as a whole. Meanwhile, wage pressures are estimated to moderate slightly going into year-end.
0730 GMT – Switzerland November producer and import prices
Prior release can be found here. Much like elsewhere across the globe, cost pressures are estimated to creep higher and that will keep the pressure on inflation towards year-end.
1000 GMT – Eurozone October industrial production data
Prior release can be found here. An overall indication of factory output in the euro area. That said, this is very much a lagging/inconsequential data point at this stage.
1100 GMT – US November NFIB small business optimism index
Prior release can be found here. This is an index which measures the opinion of small businesses on the economic conditions in the country.
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
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