Headlines:
Markets:
- JPY leads, NZD lags on the day
- European equities lower; S&P 500 futures flat
- US 10-year yields flat at 3.504%
- Gold down 0.2% to $1,806.23
- WTI crude up 0.7% to $75.94
- Bitcoin up 0.8% to $17,900
Price pressures globally are showing signs of cooling as we look towards the end of the year but while slightly softer than expected, UK inflation remains comfortably in double-digits and just off the over 11% reading in October. That won’t do much to change the narrative of a 50 bps rate hike by the Bank of England tomorrow.
The report failed to trigger much of any reaction in the pound, with broader market sentiment solely focused on the Fed today.
US futures and Treasury yields are flattish, not offering much direction following the volatile moves after the softer US CPI data yesterday. As for the dollar, it remains sluggish and trading more mixed today after a big fall overnight.
EUR/USD nudged a little higher from 1.0630 to 1.0670 before coming back to 1.0630-40 levels now, with GBP/USD also rising up from 1.2350 to 1.2400 before easing slightly to 1.2360 levels.
Overall, there is some push and pull as markets try to get settled in awaiting the FOMC meeting decision and statement that is to come later in the day.
USD/JPY eased lower from 135.60 to 134.60 before keeping closer to 135.00 now, down 0.4% on the day as sellers look to try and push for more.
Meanwhile, USD/CAD is up a touch by 0.2% to 1.3575 and NZD/USD down 0.4% to 0.6435 with the latter seeing large option expiries in play around 0.6400 to 0.6425 today.
All in all, it’s just noise in price action so far as all eyes stay on Powell & co. to guide markets to the next directional path this week.