Key Highlights for Monday, December 16:
Markets are bracing for a pivotal week featuring the year-end policy decisions of several major central banks. Ahead of these announcements, flash Manufacturing and Services PMI data for December from Germany, the Eurozone, the UK, and the US are set to grab investors’ attention on Monday.
Market Overview
- US Dollar (USD): The USD Index advanced nearly 1% last week, driven by rising Treasury yields and a cautious market sentiment. Early Monday, the index consolidates below 107.00 as investors await the NY Empire State Manufacturing Index for December. The Federal Reserve (Fed) will announce its monetary policy decisions and release its updated Summary of Economic Projections (SEP) on Wednesday following its two-day meeting.
US Dollar PRICE Last 7 days
The table below shows the percentage change of US Dollar (USD) against listed major currencies last 7 days. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.51% | 0.85% | 2.52% | 0.49% | 0.30% | 1.09% | 1.40% | |
| EUR | -0.51% | 0.36% | 2.15% | 0.07% | -0.12% | 0.66% | 0.97% | |
| GBP | -0.85% | -0.36% | 1.59% | -0.28% | -0.47% | 0.31% | 0.60% | |
| JPY | -2.52% | -2.15% | -1.59% | -2.01% | -2.09% | -1.52% | -1.03% | |
| CAD | -0.49% | -0.07% | 0.28% | 2.01% | -0.15% | 0.59% | 0.89% | |
| AUD | -0.30% | 0.12% | 0.47% | 2.09% | 0.15% | 0.79% | 1.08% | |
| NZD | -1.09% | -0.66% | -0.31% | 1.52% | -0.59% | -0.79% | 0.28% | |
| CHF | -1.40% | -0.97% | -0.60% | 1.03% | -0.89% | -1.08% | -0.28% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
- Asia-Pacific:
- Australia: The Judo Bank Composite PMI dipped to 49.9 in December from 50.2 in November, signaling a contraction in business activity.
- China: Retail Sales rose 3% year-over-year in November, falling short of the 4.6% growth expected by markets. Despite last week’s small losses, AUD/USD remains steady above 0.6350 in early Monday trading.
- Europe:
- EUR/USD: The Euro reversed its five-day losing streak on Friday and is holding modest gains above 1.0500 on Monday. ECB President Christine Lagarde’s speech during European trading hours will be closely monitored for insights into the central bank’s policy outlook.
- GBP/USD: After hitting its lowest level since late November near 1.2600 on Friday, GBP/USD is staging a technical rebound toward 1.2650 early Monday.
- Japan: USD/JPY maintained its bullish momentum, gaining over 2% last week. The pair is consolidating around 153.50 on Monday. Jibun Bank data showed an improvement in both Manufacturing PMI (49.5 vs. 49.0) and Services PMI (51.4 vs. 50.5) in December.
Commodities
- Gold (XAU/USD): Gold faced significant selling pressure late last week, registering sharp losses on Thursday and Friday. On Monday, it is trading slightly above $2,650, holding steady as investors await key economic data and central bank decisions.
Looking Ahead
This week’s focus will center on central bank actions:
- Federal Reserve: Monetary policy decisions and the SEP release on Wednesday.
- ECB, Bank of England (BoE), and Bank of Japan (BoJ): Policy meetings and updates later in the week.
- Key Data Releases: Flash PMIs from the US, Eurozone, UK, and Germany on Monday, offering an early glimpse into December’s economic activity.
Markets remain on edge as traders prepare for potential surprises from these critical events, which will likely set the tone for currency and commodity trends heading into the end of the year.
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