The New Year holidays are behind us, and market liquidity has returned. The first trading week of the year was eventful, with market participants closely monitoring inflation data from Germany and the eurozone, along with the release of FOMC minutes. As the week progressed, attention shifted to key labor market reports from the U.S. and Canada.
Germany:
● The German inflation report showed an increase in the consumer price index for December, rising from -0.2% to 0.4% month-over-month and from 2.2% to 2.6% year-over-year.
United States:
● At 2:45 p.m. GMT, the U.S. services PMI for December was released, showing an increase to 56.8, up from the previous value of 56.1.
Eurozone:
● At 10:00 a.m. GMT, inflation data for December was released, showing the core CPI unchanged at 2.7% year-over-year, while the overall CPI increased to 2.4% from 2.2%.
United States:
● At 3:00 p.m. GMT, two key reports were released. The ISM Non-Manufacturing PMI for December climbed to 54.1, up from 52.1 in the previous month. JOLTS data showed 8.098 million job openings in November, an increase from 7.839 million previously.
United States:
● At 1:15 p.m. GMT, ADP reported a decline in non-farm payrolls for December, falling to 122,000 from the previous 146,000.
● At 3:30 p.m. GMT, the EIA's crude oil inventory report showed a drop of 0.959 million barrels, slightly less than the prior decrease of 1.178 million barrels.
● At 1:30 p.m. GMT, weekly initial jobless claims decreased to 201,000, down from 211,000 the previous week.
● At 7:00 p.m. GMT, the FOMC meeting minutes were released, offering further insights into the Federal Reserve's policy direction.
United States:
● Thursday was a national holiday in the United States, and local exchanges remained closed for the day.
United States:
● At 1:30 p.m. GMT, the U.S. labor market report for December will be released. Analysts predict a 0.3% month-over-month increase in average hourly earnings (down from 0.4% in November). The unemployment rate is expected to hold steady at 4.2%, while non-farm payrolls are forecasted to rise by 164,000, compared to 227,000 in the previous month.
Canada:
● Also at 1:30 p.m. GMT, Canada will release its December labor market data. Employment is projected to grow by 24,900 jobs (down from 50,500 in November), with the unemployment rate expected to tick up slightly to 6.9% from 6.8%.
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