Greek political risk, the announcement of regulatory changes from China’s SAFE, and year-end positioning are driving FX ahead of the NA session, providing fresh lows for EUR, the largest one day gain in CNY since March and outperfor-mance for JPY in light of Japan’s December 31 holiday. Oil prices remain in focus, with both Brent and WTI breaking to fresh lows on Monday and falling further through the start of the European session as market participants consider the implications of softened leading indicators from China—a development that is also weighing on broader market sentiment, pressuring equity futures lower and pushing the U.S. 10Y yield decisively below 2.20%. U.S. data set for release through the NA session are likely to capture some attention, given their importance as market participants consider the Case-Shiller housing price index, and—most importantly—the Conference Board’s consumer confidence index, a series deemed to be well correlated to U.S. employment trends.
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