Eyes on JOLTS job openings ahead of inflation expectations
There is a scarcity of fresh information today. The JOLTS job openings for September and the preliminary November consumer mood index from the University of Michigan will be released later in the day. The results of the JOLTS survey should demonstrate that supply of workets continues to be the most pressing issue in the labor market. These are generally second-tier economic data from the United States, but they may garner more attention this time around because the spotlight is currently on inflation forecasts and the job quit rate. Traders will look on inflation forecasts for the next year in the Michigan survey, which are expected to rise to 4.9%. The Fed’s Williams will have a speech today.
The US dollar index is retreating somewhat after the jump towards a fresh high of 95.24 earlier today. Dollar/yen is moving below the 114.00 psychological mark, after two consecutive green days.
Several dangers to growth remain on the table for the euro. Consumers are being squeezed by rising energy prices, China’s economic slowdown is disappointing news for Europe’s main export market, and rising covid cases in the Netherlands forced the country to enact a temporary lockdown. As the number of cases has risen recently, Germany could follow suit. The euro is tumbling to a fresh 16-month low of $1.1442.
Brexit comes back on the radar
Brexit tensions are still attracting a lot of interest. As part of the ongoing negotiations, the two parties will meet in London today. According to the most recent sources, the EU is prepared to improve its offer to reduce customs procedures in Northern Ireland, but it is nearing the end of its patience. According to reports, EC Vice President Sefcovic will tell the UK today that an agreement will not be feasible until the country lifts its “unachievable” demands that the European Court of Justice be removed from its supervision function. Frost, the United Kingdom’s chief Brexit negotiator, has called for a thorough rewrite of the agreement and has warned of unilateral amendments if the EU does not make sufficient concessions. Currently, the pound is trading at $1.3410, well under the 11-month low of 1.3352.
Commodities
In other markets, gold prices are posting a negative session after six consecutive green days but remain comfortably above $1,800/per ounce. Also, oil prices are heading south, dropping beneath $80.00/per barrel.
