- UK inflation rose to its highest level in just under six years in November. Coming in at 3.1%, the Office for National Statistics said that airfares and computer games contributed to the increase.
- PPI input m/m came in stronger than expected at 1.8% vs 1.6% expected but RPI y/y was softer than expected at 3.9% vs 4.1%.
- After two days of losses sterling gained in value against euro moving up by a modest 12 points on the day after opening at 1.1329 and closing at 1.1341.
- Sterling did however lose value against the US dollar with GBP/USD closing down 1.3317 after opening 1.3337.
- US PPI m/m came in as expected at 0.4% and core PPI m/m came in at 0.3% which beat the expected figure of 0.2%.
- Doug Jones became the first Democrat to win a US senate seat for Alabama. Republican Roy Moore was unexpectedly beaten but refused to concede defeat, saying that it’s “not over”.
- The Republican majority in the senate is now only 51-49 so the they can only afford to lose 1 seat. In the event of a 50-50 tie, Vice President Mike Pence will have the casting vote.
- This morning we have seen UK average earnings index 3m/y come in as expected at 2.5%. Claimant count change was worse than expected at 5.9K vs 3.3K and the unemployment rate was also higher than expected at 4.3% vs 4.2% expected.
- This afternoon we have inflation data from the US at 1.30pm before crude oil inventories at 3.30pm.
- President Trump is expected to speak about tax reform in Washington DC at some point this afternoon.
- The FOMC are expected to release economic projections and the FOMC statement at 7pm alongside the federal funds rate which is expected to be <1.50%.
- The press conference will follow shortly after at 7.30pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|13:30||USD||Core CPI m/m||0.2%||0.2%|
|15:30||USD||Crude Oil Inventories||-3.6M||-5.6M|
|Tentative||USD||President Trump Speaks|
|19:00||USD||FOMC Economic Projections|
|19:00||USD||Federal Funds Rate||<1.50%||<1.25%|
|19:30||USD||FOMC Press Conference|