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Price action was a snoozefest for the major currencies, except for the pound which struggled at key resistance areas and the Canadian dollar which was still supported by OPEC’s output deal extension.

  • NZ overseas trade index (q/q) up by 0.7% vs. 1.3% expected, 1.4% previous
  • AU AIG manufacturing index up from 51.1 to 57.3 in November
  • Japan’s national core CPI (y/y) up by 0.8% as expected vs. 0.7% gain in October
  • Japan’s household spending (y/y) clocks in at 0.0% vs. 0.2% decline expected
  • Japan’s unemployment rate remains at 2.8%, the lowest since 1993
  • Tokyo’s core CPI (y/y) remains at 0.6% as expected
  • Japan’s final manufacturing PMI down to 53.6 vs. 53.8 expected in November
  • China’s Caixin manufacturing PMI down from 51.0 to 50.8 vs. 51.2 expected
  • Australia’s commodity prices (y/y) down by 3.3% vs. 10.9% gain in October

Major Events/Reports:

Multiple PMI releases

New month, new batch of PMI reports! Earlier today we saw PMI releases from Japan, Australia, and China.

Japan’s November PMI clocked in at 53.6 in November after clocking in at 52.8 in October. That’s the steepest increase in the manufacturing sector since March 2014, yo!

According to the report, “rising demand from China supported a nine-month high in export growth,” which then pushed manufacturers to up their production to its fastest in 45 months. Wowza!

A report by AIG in Australia also heralded good news, as it clocked in 6.2 points higher to 57.3 in November. It marked the 14th consecutive month of expansion, which is the longest run since 2005.

Apparently, all seven subsectors showed growth for the month, with new orders and exports painting a good rosy picture for 2018’s growth trends.

Meanwhile, China’s unofficial Caixin manufacturing PMI printed at 50.8, which is lower than October’s 51.0 reading and the expected 51.2 figure.

The report marked its lowest reading in five months, as optimism towards business outlook dropped to its lowest on record. On the bright side, production and new orders still showed modest gains for the month.

Senate delays tax bill vote

The drama continued on the Senate floor today as Senate Republicans delayed voting on their tax bill after it hit a snag.

The Senate parliamentarian ruled late Thursday that a fiscal “trigger” would not work under the Senate rules, which means that the current version of the bill likely won’t get the vote of deficit-wary Senator Bob Corker.

Senate Majority Whip John Cornyn shared that “It doesn’t look like the trigger is going to work, according to the parliamentarian,” adding that “we have an alternative, frankly: a tax increase we don’t want to do to try to address Sen. Corker’s concerns.”

Senate Majority Leader itch McConnell said that the bill will be reworked and roll call votes are set or 11AM on Friday instead. Tune in on the next episode!

Major Market Mover(s):


Loonie bulls finally caught up to optimism over OPEC’s latest output deal extension even as doubts remained over its effectiveness and the possibility of revisions in June.

USD/CAD is down by 20 pips (-0.16%) to 1.2876;
CAD/JPY is up by 16 pips (+0.18% to 87.39;
GBP/CAD is down by 24 pips (+0.14%) to 1.7424, and
AUD/CAD is down by 20 pips (+0.21%) to .9738.


The British pound traded on tight intraday ranges as bulls and bears play tug-o-pips around significant technical levels.

GBP/USD is chillin just below 1.3550;
GBP/JPY is stuck at 152.30;
GBP/NZD isn’t moving from the 1.9800 area, and
EUR/GBP hasn’t moved from the .8800 psychological handle.

Watch Out For:

  • 8:15 am GMT: Spain’s manufacturing PMI (56.6 expected, 55.8 previous)
  • 8:30 am GMT: Switzerland’s manufacturing PMI (62.6 expected, 62.0 previous)
  • 8:45 am GMT: Italy’s manufacturing PMI (58.4 expected, 57.8 previous)
  • 8:50 am GMT: France’s final manufacturing PMI to remain at 57.5?
  • 8:55 am GMT: Germany’s final manufacturing PMI expected to maintain 62.5 reading
  • 9:00 am GMT: Euro Zone’s final manufacturing PMI to retain its 60.0 reading?
  • 9:30 am GMT: U.K. manufacturing PMI (56.6 expected, 56.3 previous)