– Asian equities rallied, USD weakened
– Australia retail sales surprised weak
– Malaysia trade surplus narrowed less than expected
– We expect the Polish central bank to cut rates
What to watch for today
GER: Temporary IP pickup. Our economists expect German industrial production to print 0.8% mom in the month of December after three weak months, which should keep markets focused on the inadequate pace of growth in the euro area core. The weaker-than-expected tone of the factory orders data suggests that the surprise risk for today’s data lies to the downside. We remain bearish on EURUSD and expect the pair to trade down to 1.25 in three months’ time.
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