Bourses prêtes pour réunions des Banques Centrales et PMI du lundi 16 décembre

Flash PMI data from major economies sets the tone for the new week

As we begin a new week, market participants are preparing for a significant period that will see the last policy meeting of the year for several major central banks. Before these crucial events, investors will closely monitor the release of flash Manufacturing and Services Purchasing Managers Index (PMI) data for December from Germany, the Eurozone, the UK, and the US on Monday.

USD Index and economic data in focus

The US Dollar (USD) Index saw a nearly 1% gain over the previous week, benefiting from rising Treasury bond yields and a cautious market sentiment. On Monday, the USD Index remains within a tight range below 107.00. Additionally, the US economic calendar will feature NY Empire State Manufacturing Index data for December. Later in the week, the Federal Reserve (Fed) is poised to announce its monetary policy decisions and release the revised Summary of Economic Projections (SEP) post its two-day meeting.

Key highlights in the currency markets

The past week saw notable fluctuations in major currency pairs, with the US Dollar performing strongly against the Japanese Yen. As we navigate through a new trading week, several major currencies show varying percentage changes against one another, reflecting the evolving dynamics in the foreign exchange market.

Global economic indicators and market reactions

Different regions such as Australia and China have released economic data that are shaping market sentiments. Notably, Judo Bank Composite PMI in Australia dipped in December while Retail Sales in China fell short of expectations. These developments have implications for currency pairs like AUD/USD and EUR/USD.

Insights into central banks’ roles and policies

Central banks play a crucial role in maintaining price stability within an economy or a region. Key monetary policy tools, such as adjusting interest rates, are essential in managing inflation and economic growth. The independence of central banks and the diverse views within their policy boards influence policy decisions and communication strategies with the public and financial markets.

Source : www.fxstreet.com