| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | United Kingdom | Retail Sales (MoM) | November | -0.7% | 0.5% | 0.2% |
| 07:00 | United Kingdom | Retail Sales (YoY) | November | 2.0% | 0.8% | 0.5% |
| 07:00 | Germany | Producer Price Index (MoM) | November | 0.2% | 0.3% | 0.5% |
| 07:00 | Germany | Producer Price Index (YoY) | November | -1.1% | -0.3% | 0.1% |
USD weakened against other major currencies in the European session on Friday as investors awaited the release of the Federal Reserve’s preferred inflation metrics later in the day.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.26% from the previous close to 108.13.
Investors will receive the core personal consumption expenditures (PCE) price index - the favourite inflation gauge of the U.S. central bank - at 13:30 GMT. The core PCE price index, which excludes food and energy, is expected to show rises of 0.2% MoM and 2.9% YoY for November compared to gains of 0.3% MoM and 2.8% YoY in October.
During the Fed’s post-meeting press conference earlier this week, chairman Jerome Powell emphasised that further progress on inflation is to be seen before additional rate decreases.
Yestarday’s batch of U.S. economic data, which included last week’s initial jobless claims, third estimate of Q3 GDP growth, November existing home sales and leading indicators, was better than anticipated, justifying the Fed’s policymakers views that the domestic economy remains robust and there is no urgency to ease monetary policy stance.
Meanwhile, markets weigh the potential of the U.S. government shutdown after President-elect Donald Trump expressed his disapproval of the continuing resolution that had been worked out and demanded that Congress pass a bill that also includes an agreement to raise the debt ceiling.