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There were a couple of economic reports printed during the Asian session, but traders mostly focused on headlines over the weekend.

  • Japan’s monetary base (y/y) up by 13.2% in November as expected vs. 14.5% growth in October
  • AU MI inflation gauge pops up by 0.2% vs. 0.3% gain in October
  • AU company operating profits (q/q) slips by 0.2% vs. 0.3% gain expected, 3.3% dip previous
  • AU ANZ job ads retains its 1.5% growth in November
  • Japan’s consumer confidence improves from 44.5 to 44.9 (50-month high!) in November

Major Events/Reports:

ABC retracts part of Trump expose

Unless you’ve been too busy digging up your Mariah Carey holiday songs, you should know that the dollar fell across the board late last Friday when ABC printed that Trump may have been contacting the Russians while he was still a candidate.

Fast forward a couple of hours later and the news organization retracted its story, saying that the Donald had actually kept in touch “during the transition” instead of when he was still a civilian. The markets had closed by then, however, so traders had no opportunity to price in the correction until today.

Senate passes its version of tax bill

After days of suspense, the Republican Senators have officially passed their version of the tax bill. Read our Reuters update if you want to know more about it!

The key takeaway is that the Trump administration is now another step closer to an actual tax bill. The Republican Senators just have to reconcile their version with the Lower House’s and then they can start to vote on it.

Major Market Mover(s):

USD

The Greenback had a running start as news of ABC’s retraction and the Senate passing its tax bill version delivered a one-two punch to its major counterparts.

USD/JPY jumped from 112.04 to 112.79 before settling at 112.74;
EUR/USD dipped from 1.1894 to 1.1864 before chillin’ at 1.1870, and
USD/CHF popped up from .9758 to .9810 before trading at .9826.

Watch Out For:

  • 8:00 am GMT: Spain’s unemployment change (54.3K expected, 56.8K previous)
  • 9:30 am GMT: Euro Zone Sentix investor confidence (32.3 expected, 34.0 previous)
  • 9:30 am GMT: U.K. construction PMI (51.2 expected, 50.8 previous)
  • 10:00 am GMT: Euro Zone PPI (0.4% expected, 0.6% previous)