Big Central Bank week kicks off with flash PMI releases
Press Hub UCapital
Share:
This week, financial markets are focused on critical central bank meetings and key economic data releases, with flash PMI data from Germany, the Eurozone, the UK, and the US setting the tone for Monday. Investors are navigating a cautious environment, with the US Dollar maintaining strength supported by rising Treasury yields and a risk-averse market sentiment.
Key Developments
US Dollar Strength:
The US Dollar Index (DXY) gained nearly 1% last week, driven by higher Treasury yields. Early Monday, it remains steady below the 107.00 mark. Key data for the day includes the NY Empire State Manufacturing Index for December, while the Federal Reserve’s monetary policy announcement on Wednesday will be the highlight of the week, accompanied by the Summary of Economic Projections (SEP).
Flash PMI Data:
Eurozone, UK, and US flash PMIs are expected to reflect diverging economic trends. While the Eurozone PMI is likely to signal further contraction, the US PMI may show resilience, underlining stronger economic activity in the US.
Australian Data:
Australia’s Judo Bank Composite PMI dipped slightly below 50, signaling marginal contraction in business activity. Despite this, AUD/USD holds above 0.6350 after recent declines.
China Retail Sales:
Chinese Retail Sales increased by 3% year-over-year in November, missing expectations of 4.6%. This underscores lingering challenges for the Chinese economy and may weigh on risk-sensitive currencies.
Currency Market Snapshot
EUR/USD:
After snapping a five-day losing streak on Friday, the pair holds gains above 1.0500. ECB President Christine Lagarde’s speech today will be closely watched for policy insights.
GBP/USD:
The pair rebounded to near 1.2650 on Monday after hitting its lowest level since late November. However, downside risks remain amid weak UK economic data and a bearish technical outlook.
USD/JPY:
The pair continues to consolidate near 153.50 after a robust 2% rally last week. Improved Japanese PMI data provided limited relief, with the manufacturing PMI rising to 49.5 and the services PMI climbing to 51.4.
Gold (XAU/USD):
After substantial losses late last week, gold steadies slightly above $2,650. Market sentiment remains cautious ahead of the Federal Reserve’s decision, keeping gold prices under pressure.
Key Data and Events Ahead
Monday:
Flash PMIs from Germany, the Eurozone, the UK, and the US; NY Empire State Manufacturing Index.
Later in the Week:
Wednesday: Federal Reserve interest rate decision and economic projections.
Thursday: ECB and Bank of England rate decisions.
The week’s outcomes will shape expectations for global monetary policy in 2025 and influence currency, equity, and commodity markets significantly.
Key Developments
US Dollar Strength:
The US Dollar Index (DXY) gained nearly 1% last week, driven by higher Treasury yields. Early Monday, it remains steady below the 107.00 mark. Key data for the day includes the NY Empire State Manufacturing Index for December, while the Federal Reserve’s monetary policy announcement on Wednesday will be the highlight of the week, accompanied by the Summary of Economic Projections (SEP).
Flash PMI Data:
Eurozone, UK, and US flash PMIs are expected to reflect diverging economic trends. While the Eurozone PMI is likely to signal further contraction, the US PMI may show resilience, underlining stronger economic activity in the US.
Australian Data:
Australia’s Judo Bank Composite PMI dipped slightly below 50, signaling marginal contraction in business activity. Despite this, AUD/USD holds above 0.6350 after recent declines.
China Retail Sales:
Chinese Retail Sales increased by 3% year-over-year in November, missing expectations of 4.6%. This underscores lingering challenges for the Chinese economy and may weigh on risk-sensitive currencies.
Currency Market Snapshot
EUR/USD:
After snapping a five-day losing streak on Friday, the pair holds gains above 1.0500. ECB President Christine Lagarde’s speech today will be closely watched for policy insights.
GBP/USD:
The pair rebounded to near 1.2650 on Monday after hitting its lowest level since late November. However, downside risks remain amid weak UK economic data and a bearish technical outlook.
USD/JPY:
The pair continues to consolidate near 153.50 after a robust 2% rally last week. Improved Japanese PMI data provided limited relief, with the manufacturing PMI rising to 49.5 and the services PMI climbing to 51.4.
Gold (XAU/USD):
After substantial losses late last week, gold steadies slightly above $2,650. Market sentiment remains cautious ahead of the Federal Reserve’s decision, keeping gold prices under pressure.
Key Data and Events Ahead
Monday:
Flash PMIs from Germany, the Eurozone, the UK, and the US; NY Empire State Manufacturing Index.
Later in the Week:
Wednesday: Federal Reserve interest rate decision and economic projections.
Thursday: ECB and Bank of England rate decisions.
The week’s outcomes will shape expectations for global monetary policy in 2025 and influence currency, equity, and commodity markets significantly.