- ECB's Nagel: Eurozone inflation is practically at target and will flactuate around it
- BoE's Bailey: Maintaining focus on financial stability is more important than ever
- Eurozone November preliminary CPI +2.2% vs +2.1% y/y expected
- Seasonal patterns, fundamentals point to dollar selling in December - Credit Agricole
- European equities hold steadier at the open today
- ECB's Kocher: The ECB doesn't need to react to small deviations around inflation target
- UK November Nationwide house prices +0.3% vs +0.1% m/m expected
- FX option expiries for 2 December 10am New York cut
- Japan November consumer confidence index 37.5 vs 35.8 prior
It's been a pretty boring session with very few data releases and limited newsflow. The main highlight was the Eurozone Flash CPI. The headline CPI beat expectations slightly coming in at 2.2% vs 2.1% prior, while the Core CPI matched forecasts at 2.4% remaining unchanged from the prior month.
We got a couple of ECB speakers reiterating once again that the central bank doesn't need to react to small deviations from their 2% target and that inflation is expected to fluctuate around it. That's been their message since summer.
In the markets, it's been kind of the same doldrum with mostly a rangebound price action across various asset classes. In FX, the US dollar is basically flat on the day after recovering most of yesterday's losses. US equities are still consolidating below the Friday's high. Gold extended the pullback from yesterday's high, while bitcoin continues to recover slowly from yesterday's selloff. US Treasury yields have been rising quickly since Friday, but they remain in the 3-month range.
In the American session, we don't have anything on the agenda other than a couple of central bank speakers. This week is more of a placeholder as we await the FOMC decision next week and then the NFP and CPI reports.
