In the European session, the main highlight will be the UK Autumn Budget announcement.
In the American session, we will get the latest US Jobless Claims figures. The release was brought forward because tomorrow it’s Thanksgiving Day and US markets will be closed.
The Initial Claims are expected at 225K vs 220K prior, while Continuing Claims are seen at 1969K vs 1974K prior. The jobless claims data continues to point to a “low firing, low hiring” labour market but the increase in continuing claims should also translate in a higher unemployment rate.
The Fed is trying to find a balance between the cooling labour market and the inflationary pressures. Right now, the market expects the Fed to cut by 25 bps in December following Fed’s Williams endorsement, but there’s a risk that the decision could end up in a “hawkish cut” scenario
