Markets are off to a difficult start this week, the combination of disappointing trade data from China, a downward revision to Japanese GDP and a warning from the BIS that the strong USD could put several more vulnerable emerging markets at risk have weighed on sentiment and supported the USD further. The U.S. 2‐year remains at 3.5year highs, equities are weak and crude is flirting with its lows, with WTI at $64.75 and Brent at $67.70. Today, the release of the Fed’s Labour Market Conditions index is an important update and the Fed Lockhart (dove who holds a vote in 2015) provides the last speech before the beginning of the quiet period into the December 17th Fed meeting.
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