FX News Today
In Asia, long yields dipped in tandem with Treasury yields, with the 10-year Treasury yields are down -0.2 bp at 2.816%.
Asia and European stock futures are mixed with all eyes on the Fed, with UK100 futures heading south, while GER30 futures marginally higher. Topix and Nikkei are down -0.41% and -0.60%
Oil prices fell to a low of just $46.10 before regaining some ground to now USD 46.50 per barrel.
US budget update: Democrats rejected the bill offered by Senate Leader McConnell,. Avoiding a government shutdown with a short-term spending bill before the holidays seems the most sensible solution, but this is the first major power play since the mid-term elections, which saw the House flip to the Democrats starting next year.
Today, US futures gain following a mixed session for equities in Asia overnight.
German producer price inflation came in higher than anticipated at 3.3% y/y.
Charts of the Day
Main Macro Events Today
UK CPI – Expectations – The headline CPI is expected to ebb to 2.3% from 2.4%.
BoC CPI and Core – Expectations – CPI is seen falling 0.4% m/m (nsa) in November after the 0.3% gain in October, as a 10% plunge in gasoline prices pulls the CPI lower relative to October. The CPI is seen slowing to a 1.8% y/y pace in November from the 2.4% clip in October, with gasoline prices again the driver.
FOMC Monetary policy and Conference – Expectations – A 25 bp tigthening in the Fed funds rate is priced in. What will be key is what’s indicated about the 2019 rate trajectory.
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AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.