It has been a busy session on Tuesday, with the US dollar firmer after finding some support from an OECD report which points to an acceleration in US growth next year. Late in the day, the focus is now turning to the Fed chair nominee, Jerome Powell’s confirmation hearing, at which he is hinting that a December rate hike will be appropriate. The other major mover in the currency markets has been Sterling which had a wild ride on Brexit headlines, initially heading lower before screaming up after a report that the UK/EU has reached an agreement over the final divorce bill. It all remains very murky, but Cable is ending the day at close to 8 week highs. Elsewhere, North Korea has apparently launched a new missile, which caused a flutter in US stocks but they have recovered from their brief selloff to finish a positive session by soaring to new all time highs. The commodity markets have been generally rangebound.
Wednesday will be a big session, with the OPEC Meeting, the German November Preliminary CPI (exp 0.3%mm/1.7%yy, HICP; exp 0.3% mm, 1.8%yy), the US Q3 GDP (exp 3.2% Annualised) and US Personal Consumption/Expenditure (exp 1.3% yy) and the October Pending Home Sales (exp +0.7%) figures all due. There will also be the usual rollout of central bank speakers, headlined by Janet Yellen testifying to Congress but also including: Dudley, Williams (Fed), Carney/Ramsden (BOE) and Weidmann (BuBa President). Note that the EIA Crude Oil Stocks Weekly Change and the Beige Book are also due. Before any of that, US Treasury Secretary Mnuchin will be speaking shortly; as apparently will Donald Trump. The Asian day will kick off with the RBNZ Financial Stability Report and a speech from the RBNZ Deputy Governor, Spencer.
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