– Chinese new loans modestly softer in November
– Aussie business confidence down in November
– Light data calendar leaves Italian politics and Greek buyback in focus
What to watch for today
EUR: ZEW update. The data calendar is light today, with only the ZEW survey of manufacturing analysis for the month of December to note. Markets are looking for a slight improvement in the current situation headline from 5.4 to 6.0 and in the economic sentiment indicator from -15.7 to -11.5. Data in line with consensus could likely bring some relief to the market, especially in light of the weak German, French, and Italian industrial production data last week and yesterday. We continue to see scope for EURUSD to decline to 1.25 in 1Q, burdened by renewed sovereign pressure and ECB easing expectations as activity data remains weak.
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