| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 08:00 | Switzerland | SECO Consumer Climate | December | -37.2 | -35 | -30 |
USD strengthened against most of its major rivals in the European session on Friday as investors prepared for important U.S. December inflation and retail sales reports later in the week that could impact near-term expectations of the Federal Reserve’s policy easing.
The U.S. Dollar Index (DXY), which measures the U.S. currency's value relative to a basket of foreign currencies, increased 0.32% from its previous close to 110.00.
Friday’s hotter-than-expected December jobs report added to concerns over persistent inflationary pressures in the U.S., fueled by a resilient labour market and wage growth. This prompted markets to trim further their expectations for the Fed's interest rate decreases in 2025. According to CME FedWatch, they now fully price in just one 25-basis-point rate reduction this year, with the move likely coming no sooner than June.
Markets’ Fed rate cut bets will be tested again later this week when they receive the U.S. December data on producer prices (on Tuesday), consumer prices (on Wednesday) and retail sales (on Thursday). Hotter-than-expected data might dampen the prospect of the U.S. central bank’s further policy easing this year.