European FX Outlook: Bundesbank monthly bulletin headlines data empty day

What you need to know before markets open:

• The US Dollar came under pressure as the pressure on the US Senate increased after House approved short-term spending bill in an attempt to avert the government shutdown that would begin today onwards.
• German SPD party voted in favor of coalition talks with CDU/CSU of Angela Merkel.

Monday’s market moving events

• Greek current account numbers are due on Monday.
• German Bundesbank is set to release its monthly bulletin.
• ECB President Mario Draghi and the executive board member Benoit Coeure are set to participate at the Eurogroup meeting in Brussels.
• Chicago Fed index is expected to rise to 0.44 in December
• Canada’s wholesale sales are set to increase 0.6% m/m in November.

Major forex market movers

• The US Dollar is set to fall across the board as the US major political parties failed to reach an agreement to prolong government financing triggering the US government shutdown.

Friday’s macro summary

• German PPI rose 0.2% m/m while decelerated to 2.3% y/y in December.
• The Eurozone current account recorded a surplus of €32.5 billion in November.
• The UK retail sales fell 1.5% m/m in December while core retail sales decreased 1.6% m/m at the same time.The UK retailers contributed almost nothing to the GDP growth in fourth quarter.
• Chris Williamson, a chief business economist at IHS Markit, said about the UK retail sales that: "The data add to signs that rising prices and stubbornly weak pay growth continue to erode consumer spending power and will act as a drag on the economy in 2018."
• Canada’s manufacturing sales increased 3.4% m/m in November
• University of Michigan consumer confidence index decreased to 94.4 in January, down from 97.0 expected.