In the European session, we don't have much on the agenda other than the Swiss Retail Sales and the final PMI readings for the UK and the major Eurozone economies. None of these releases is going to change anything for the respective central banks, so the reaction will likely be muted.
In the American session, the main highlight will be the US ISM Manufacturing PMI. The consensus sees an uptick to 49.0 vs 48.7 prior. The S&P Global Manufacturing PMI fell to a four-month low in November but "still signalled an improvement in factory business conditions".
The agency added that "production growth dipped slightly but remained solid by recent standards, and employment rose at the fastest rate since August. However, new order book growth weakened from October’s strong reading and therefore weighed on the PMI. In contrast, a greater lengthening of lead times acted as a stronger positive influence. Inventories of inputs were meanwhile largely unchanged."
The market is pricing a 90% chance of a rate cut at the upcoming FOMC meeting, so the data is unlikely to change anything unless we get some big deviations. What comes next will depend on the Fed's forward guidance next week and the following NFP/CPI reports.
Central bank speakers:
- 15:30 GMT/10:30 ET - BoE's Dhingra (dove - voter)
