- The sterling started the day weaker against the greenback and continues to lose as UK Inflation data came in lower than expected. November Core CPI YoY and Headline CPI YoY rose +5.1% vs. est. +5.6%, and +3.9% vs. est. +4.3%, respectively.
- Cable currently trades at 1.2677 and, FTSE and Gilt futures look set to a good start of day as this notable slowdown in inflation can increase rate cut speculation.
- The euro tried to aim for 1.10 yesterday afternoon, but we got as far as 1.0987. Today we are lower, consolidating near 1.0950 ahead of today’s Germany PPI and consumer confidence.
- The Yen trades at 143.50 against the US Dollar, consolidating below 144 as traders digest BOJ’s decision of no changes in their negative rate monetary policy.
- Oil is little changed this morning after gaining for two consecutive days, as traders and shippers wait for any developments on the disruptions on the Red Sea as it can signal a potential escalation of the Israel-Hamas conflict.
This will be the last Market Watch update of 2023, and we would like to wish all our readers a Merry Christmas and a Happy New Year.
