Another strong jobs report from the United States today has all but guaranteed a Fed rate hike on Dec. 16. Of course, this is based on the assumption that the Fed will act in line with its guidance in recent months, something that many of its counterparts failed to do this year, most recently the European Central Bank on Thursday.
Yesterday, we asked whether Saint Draghi would bring a shiny new present or a lump of coal to expectant EUR/USD bears.
Today we learned that the bears must have been much naughtier than they had thought, as all they found this morning was two particularly small and unimpressive lumps of coal in the bottom of their stockings.
European stocks hovered at a 3-month high and the euro was just above a 7-1/2-month low on Wednesday as euro zone inflation remained barely visible and underlined just why the European Central Bank is set for more stimulus.
While this week’s biggest events come towards the end of the week – ECB monetary policy decision, US jobs report and OPEC meeting – there are a number of economic releases due today that will be of interest, starting this morning with the final eurozone manufacturing PMI readings.