The UK PMI services-sector index was revised higher to 53.6 for December from the flash reading of 53.2, although this was still the lowest reading for 10 months. There was a further sharp increase in charges by companies, although the rate of increase declined slightly for the first time since August. The latest Bank of England survey of financial officers indicated that companies expected to increase prices 5% in the year ahead compared with 4.2% in the previous survey. Sterling secured an element of support from optimism that further coronavirus restrictions would be avoided. The UK currency, however, was hampered by the less confident tone surrounding risk appetite as UK equities posted a sharp correction.
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German factory orders increased 3.7% for November after a 5.8% decline the previous month and above consensus forecasts of 2.1%. Consumer prices increased 0.5% for December with the year-on-year inflation rate increasing to 5.3% from 5.2%. This was above consensus forecasts of 5.1% and the highest rate since July 1992. The Euro was resilient into the New York open with support against the dollar and it gradually edged higher as the single currency found some support on the crosses with a peak.
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10:00 Consumer Price Index- Forecast 2.5 Previous 2.6
10:00 EUR Retail Sales Forecast 5.6 Previous 1.4
US initial jobless claims increased slightly to 207,000 in the latest week from 200,000 previously and slightly above market expectations of 200,000 while continuing claims increased to 1.75mn from 1.72mn previously. The latest employment data will be released on Friday with increased confidence in a strong release following the ADP data on Wednesday. The ISM non-manufacturing index retreated to 62.1 for December from 69.1 in November and below expectations of 67.0. The new orders component also declined to 61.5 from 69.7 with a slowdown in the rate of business activity growth. There was a slower increase in employment for the month while supply-side issues eased slightly.
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3:30 US Non Farm Payroll Forecast 400k Previous 210k