A relatively light start to the last trading week of the year. Monday sees the only piece of high tier data released from the Eurozone this week. German Ifo Business Climate is forecast this morning to improve on October’s 110.4 to 110.7. Germany are the powerhouse of the Eurozone, therefore a decent reading here will no doubt give the Euro a boost this morning.
The Yen has had a tough year this year, with a lot of the beating coming after the election. We could however see some fightback at Tuesday’s Bank of Japan rate decision and press conference. The BoJ are forecast to keep rates on hold at -0.10% but if the central bank can avoid a dovish tone we could see the Japanese Yen strengthen across the board.
Crude Oil inventories in the States is the only piece of high tier data released today. This piece of data has come to the forefront lately after this month’s OPEC meeting where a deal was struck to freeze production at 32.5m barrels per day. Oil is currently trading above the key psychological level of $50 a barrel.
Thursday sees a busy day for the Greenback. We have the final reading of Q3 GDP from the States followed by core durable goods in the afternoon. The data is expected to be mixed with GDP forecast to tick higher to 3.3%, whilst core durable goods is due to decline to 0.2% after a strong November figure of 1.0%.
We finish the last trading week of 2016 with only one piece of notable data. UK current account is released Friday morning at half 9. The current account which measures the difference in value between imported and exported goods is forecast to climb to -28.3B, a four month high if met Friday morning.