The dollar is sitting on the softer side so far this week with only the Japanese yen performing worse. The latter owes to yet another BOJ disappointment while dollar sentiment remains delicate amid lower yields and Fed rate cuts pricing. As the year winds down, it's going to be tough to read much into the moves as flows thin out. So, just be wary of that in the coming days and week ahead.
For trading today, there is still some semblance of normality in Europe with a few economic data releases. The most notable one being UK inflation data, which is likely to reaffirm a continued easing in price pressures in November. Headline annual inflation is estimated to ease to 4.4% from 4.6% in the month prior while core annual inflation is expected to fall to 5.6% from 5.7% previously.
The readings are still on the higher side compared to other major economies at the moment but will at least help to keep the BOE on the sidelines for now. The central bank is also perhaps relieved by better PMI data on the month, easing any stagflation pressures for now.
0700 GMT - Germany January GfK consumer sentiment
0700 GMT - Germany November PPI figures
0700 GMT - UK November CPI figures
0900 GMT - Eurozone October current account balance
1200 GMT - US MBA mortgage applications w.e. 15 December
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
