January 07, 2025 at 12:33PM
Russian data shows it cut December oil output below OPEC+ target
Italy December preliminary CPI 1.3% vs 1.5% y/y expected
Eurozone November unemployment rate 6.3% vs 6.3% expected
Eurozone December preliminary CPI +2.4% vs +2.4% y/y expected
UK December construction PMI 53.3 vs 54.4 expected
Inflation expectations over the next year rose in November – ECB survey
Germany December construction PMI 37.8 vs 38.0 prior
European indices hold more sluggish at the open today
China seen increasing gold reserves in December
France December preliminary CPI +1.3% vs +1.4% y/y expected
Switzerland December CPI +0.6% vs +0.6% y/y expected
What are the main events for today?
Eurostoxx futures -0.6% in early European trading
UK December Halifax house prices -0.2% vs +0.4% m/m expected
Japan business lobby head rebuffs wage growth expectations for this year
Inflation data in focus in European trading today
Gold hangs on above key technical point to start the week
Yellen raised concerns about “malicious” cyber activity in meeting with China vice premier
It’s been a pretty dull session in terms of market moves as we haven’t got any strong catalyst. The main highlights were the Swiss and Eurozone inflation reports which came in line with forecasts.
Overall, the markets are waiting for the US Employment and Inflation reports as those will influence interest rates expectations. In the markets, the US Dollar erased the low volume Christmas holidays gains as it’s now above the post-FOMC levels.
Equity markets are slightly positive with the UK as the only outlier. Long term Treasury yields continue to rise faster than short term yields as the bear steepening remains the playbook which is generally seen during economic strength.
In the commodities markets, gold is a bit positive on the day but the news of China increasing gold reserves for the second consecutive month didn’t spark any notable reaction. Crude oil is up 0.80% with the news of Russia cutting its December oil output below the OPEC+ target.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
