U.S. Review
Blockbuster Payrolls Set the Tone
- Nonfarm payrolls surged 321,000 in November, as the workweek and average hourly earnings picked up. The employment report, coupled with lower gas prices, bodes well for consumption in the fourth quarter.
- The ISM manufacturing and non-manufacturing indices remained firmly in expansion territory, with solid gains in the new orders and export orders components.
- The U.S. trade deficit narrowed slightly in October, as export growth outpaced imports, though this comes after a sizable widening of the deficit in the previous month.
Global Review
Brazilian Central Bank Pushes Forward
- The Brazilian central bank surprised markets in late October, just days after the second round of presidential elections, when it raised the Selic benchmark interest rate by 25 bps. The central bank sent an even stronger signal to markets on Dec 3, pushing the Selic rate 50 bps higher to take it to 11.75 percent, in an attempt to keep a lid on the Brazilian currency and inflation expectations.
- The current shift in policy direction from what President Rousseff followed during her first term in office could be signaling a larger influence by ex-President Da Silva in the Rousseff administration.
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AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
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Ethereum could remain inside key range as Consensys sues SEC over ETH security status
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Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.