The U.S. Dollar is looking stronger immediately after the release of Consumer Price Index figure, which showed continuous price-growth.
Overview
Indeed, November inflation was slightly faster in pace than in October as estimated. The yearly average ticked up from 2.6% to 2.7%. At the time of writing, the Buck improved all across the board, feeding the advancement overnight after reports of Chinese authorities planning on letting the Chinese Yuan plummet in value to counter potential “trade-war” effects.
Today begins a round of central bank meetings to close out the year amongst the G-10 currency nations. The Bank of Canada will announce its policy decision later at 9:45AM while we wait for the European central Bank and Swiss National Bank to do their part tomorrow. In geopolitical developments, the fall of the Syrian leader Assad has many wondering about the next move by Iran while the Biden administration is expected to introduce even stricter sanctions over Russian oil and energy to counter Putin’s efforts to fund fighting in Ukraine. We are at the mercy of headlines and many items as the eventful year comes to a close.
What to Watch This Week…
- ECB and SNB, Thursday
- US PPI, Thursday
- Monex USA Online is always open
EUR ⇑
The Euro has held its ground ahead of the ECB’s meeting tomorrow. We shall see how pessimistic the mood is once we hear from ECB President Christine Lagarde, which will occur as we start our morning. As of now, a 25 basis-points reduction is expected while the next three meetings for 2025 see higher odds for 50-bps cuts. Euro remains less than one percent away from its weakest levels since summer of 2022.
CAD ⇓
The Canadian Dollar is trading around its weakest levels in four years ahead of a central bank meeting that could see a 50 basis points cut. The situation in Canada has not been stellar and officials are worried about the limits of monetary stimulus and its limitations. Private-sector demand has been anemic while the unemployment rate saw a rise from 6.6% to 6.8%. We will know the decision soon after this note is published.
