The Greenback declined yesterday, as a report was released announcing China could slow down its purchase of US bonds. Officials suggested the bonds looked less attractive than other assets. The yields on 10 year Treasuries increased to 10 month highs, as a selloff was seen in the bond market. Chinese authorities announced the headlines might have been falsely reported, calming down the markets and allowing the Greenback to regain some of its losses.
The Bank of England Deputy Governor, Ben Broadbent mentioned last night in an interview, he was unsure if the BOE would raise interest rates again in 2018, after raising them for the first time in a decade back in November. Broadbent mentioned how the BOE had forecasted a further two or three rate hikes over the next three years and the rising consumer debt levels would not stop the hikes, as they would do whatever is necessary to meet the goals. The Pound remained little unchanged by the marginally hawkish tone.
The US are set to release the PPI figure for December today, expected to drop slightly and post 0.2%. The US will also be releasing the Weekly Unemployment claims, forecasted at 246k. FOMC member, William Dudley will be speaking at the Securities Industry and Financial Markets Association on the economic outlook.