With the FOMC now out of the way for the rest of this year, what little trading days are left, focus looks to the March FOMC and futures priced the chance of a rate hike by March around 25% which should be a thorn in the greenback’s side for the start of the New Year.
The number of Americans filing applications for jobless benefits rose marginally from near a 49-year low last week, suggesting underlying strength in the labor market and broader economy.
UK consumer confidence slipped to 5.5-year low in December as the country copes with the Brexit uncertainty. The drop in the consumer confidence means Britain will likely tighten their purse strings in the near future. Consumer spending, therefore, could act as a drag on the economic growth in the near term.
Closer to home, the kiwi took a beating and remains on shaky grounds bouncing off a two-month low. Aussie dollar reversed some of yesterday’s gains following a disappointing NZ GDP data.