Leading index tells a similar story with some new plot twists

Wells Fargo Research Team Wells Fargo

Summary

Year's end brought changes in the public health scene as well as the Fed's tone, but December's leading economic index rose 0.8%, the 10th straight monthly gain, reminding us that many pre-existing trends remained intact. Jobless claims continue to carry the index, dropping to an over 50-year low in December. That said, the environment heading into 2022 has led to volatility in the market-related contributions, which adds a layer of uncertainty to the next few months.

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Wells Fargo Research Team

Wells Fargo

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.