The US$ was generally firm on Friday as Republicans continued to move towards finalising the promised tax overhaul, raising expectations that the bill would be passed by year-end. The main mover of the session was Sterling, which headed lower – finding little support as Brexit negotiations formally enter their next phase after EU officials decided that sufficient progress was made in phase one. In other markets, Wall Street made yet new highs, on increasing hopes that the bill to lower corporate tax rates will be passed by year-end. The metals and WTI were both steady and rangebound.
It is going to be another busy week as we head towards Christmas, with Friday being a particularly busy session for US data (with very thin liquidity), including the Personal Consumption/Expenditure/ Income Spending – Index, Personal Income/Spending Durable Goods Orders, Michigan Consumer Sentiment Index, Kansas Fed Mfg Activity and New Home Sales. Before then Monday kicks off with the Australian MYEFO and the EU November CPI (exp 0.1% mm, 1.5% yy), while the focus on Tuesday will be on the RBA Minutes, German IFO Business Climate/Expectations and the US Building Permits/Housing Starts/Current Account. Wednesday should be relatively quiet but Thursday will be busy with the BOJ Interest Rate Decision and the US Q3 GDP (exp 3.3% annualised) along with the Personal Consumption/Expenditure. Be square before the US data on Friday. It ill be very thin indeed and the volatility is likely to be violent. Have a good week.
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|ASX SPI: 6030|