Macro Events & News

Andria Pichidi HFM

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.

Author

Andria Pichidi

HFM

Having completed her five-year-long studies in the UK, Andria Pichidi has been awarded a BSc in Mathematics and Physics from the University of Bath and a MSc degree in Mathematics, while she holds a postgraduate diploma (PGdip) in

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