Morning, Traders!
It is Wednesday the 4th of January, and we get the first important US data points in 2023 today, here are some of the things to look out for today.
Sentiment
The dollar index fell ahead of the minutes of the latest Federal Reserve meeting, which are expected to shed more light on why the Fed is concerned that high inflation will persist as the US economy enters the new year. Bunds are leading treasuries higher after data show that inflation in Europe is slowing.
According to former New York Fed President William Dudley, a US economic recession is likely due to what the Federal Reserve must do to cool inflation, but it is unlikely to be severe.
Martins Kazaks, a member of the European Central Bank's Governing Council, believes interest rates will be raised "significantly" in February and March.
The Australian dollar has risen on expectations that China will resume some coal imports from the country. Futures on US equity indexes and European stocks rose.
The yen was one of the G-10's worst performers. Japanese government bonds fell as the central bank's debt purchases failed to alleviate concerns that a Thursday auction would draw low demand.
Docket
10:00 AM ET
US ISM Manufacturing PMI for December - Median Forecast: 48.5 | Range: 49.8 / 46.9 | Prior: 49
US JOLTs Job Openings for November - Median Forecast: 10.05M | Range: 10.3M / 9.8M | Prior: 10.334M
2:00 PM ET
FOMC Meeting Minutes for the December meeting
Good luck!
