UK Wages Surge as US Retail Sales and Canadian CPI Take Focus
Tuesday starts with a mix data. Including stronger-than-expected UK wage growth. There is a sharp increase in claimant count changes. Energy markets remain steady, while currencies show muted moves as traders look toward inflation and production data later today.
Key Data Out Today
- UK Average Earnings (Oct): Including bonuses, wages rose 5.2% (above 4.6% consensus), signaling continued labor market strength.
- UK Claimant Count Change (Nov): Increased by 0.3K, much softer than last month’s 28.2K decline.
- Germany IFO Business Climate (Dec): Consensus at 85.6 signals potential economic headwinds.
- Canada CPI (Nov): Monthly and yearly inflation figures due, key for CAD movements.
- U.S. Retail Sales and Industrial Production (Nov): Focus remains on U.S. economic momentum.
Energy & Precious Metals
- Crude Oil: WTI rose to $70.87 (+0.23%), while Brent gained to $74.17 (+0.36%). Both prices reflect continued optimism as demand signals stabilize.
- Gold: Steady at $2656.74/oz (+0.19%), supported by investor caution and moderate dollar movements.
- Silver: Flat at $30.52/oz (+0.02%), reflecting mixed signals from industrial demand.
Currency Movements
EUR/USD
- EUR/USD: Trading at 1.0504, down 0.07% for the day. The euro faces pressure from ongoing economic challenges in the Eurozone, while the U.S. dollar remains firm amid steady economic indicators.
GBP/USD
- GBP/USD: At 1.2702, up 0.16%. The pound shows resilience despite recent UK economic data missing forecasts, suggesting cautious optimism among investors.
AUD/USD
- AUD/USD: Trading at 0.6354, down 0.27%. The Australian dollar is weighed down by declining commodity prices and concerns over China’s economic slowdown, a key trading partner.
NZD/USD
- NZD/USD: At 0.5767, down 0.24%. The New Zealand dollar mirrors the Aussie, with added pressure from dovish signals by the Reserve Bank of New Zealand.
USD/JPY
- USD/JPY: Standing at 154.01, down 0.07%. The yen remains weak due to Japan’s ultra-loose monetary policy, while the dollar’s strength keeps the pair elevated.
USD/CNY
- USD/CNY: At 7.2888, down 0.05%. The yuan shows slight appreciation amid government efforts to stabilise the currency and support economic growth.
USD/CHF
- USD/CHF: Trading at 0.8959, up 0.14%. The Swiss franc weakens as safe-haven demand diminishes, with investors favoring the U.S. dollar.
USD/CAD
- USD/CAD: At 1.4266, up 0.17%. The Canadian dollar declines alongside falling oil prices, a major export commodity for Canada.
USD/MXN
- USD/MXN: Standing at 20.1269, down 0.03%. The peso remains stable, supported by higher interest rates in Mexico attracting foreign investment.
USD/INR
- USD/INR: At 84.9308, up 0.06%. The Indian rupee weakens slightly due to concerns over rising inflation and potential fiscal deficits.
Things to Keep a Watch On:
- Canada Inflation Data: CPI figures will drive CAD performance and shape BoC rate expectations.
- U.S. Retail Sales and Production: Key insights into the strength of consumer spending and industrial output.
- Energy Price Trends: Crude oil and natural gas movements remain in focus as seasonal demand fluctuates.
- German IFO Data: Watch for further signs of slowing momentum in the Eurozone’s largest economy.