US Fed to Trim Down its Stimulus Beginning This Month ??

Good morning fellas from Eurozone, The Euro was one of the major gainers in a lighter traded week, finishing near one month highs against the Greenback and at levels not seen in five years against the Yen. The CPI in the Eurozone rose to 0.9 per cent in November up from a four year low in October of 0.7 per cent. The forecast was only for a 0.1 per cent increase. The unemployment rate dropped by 0.1 per cent falling for the first time since the beginning of 2011 which was another positive for the Eurozone.

The Euro subsequently ended up closing at 1.3591 against the Greenback on Friday, 31 points shy of the weekly highs. This amounted to a 0.42 per cent gain for the Euro on the week against its US counterpart. The Euro gained just under 1.5 per cent against the Yen as the Japanese currency remained under pressure with investors increasing their outlooks that the Bank of Japan will put into effect further stimulus measures to meet the inflation targets set for 2015. The US dollar hit a half yearly high against the Yen 102.61 whilst the Euro's high 139.21 had not been seen since mid-2009. The Sterling closed as the biggest winner over the Yen with a gain of 2.32 per cent for the week with its highest levels reached since October 2008 at 167.74. In the week coming investors will turn to key data releases to provide guidance in the market. Rate decisions from the Bank of England, European Central Bank, Reserve Bank of Australia, and the Bank of Canada are scheduled to be announced whilst Friday's data in the US for non-farm payrolls will prove to be the main event. Investors are still carefully watching the data out of the US as there are expectations that the US Fed will be beginning to trim down its stimulus beginning this month.

Data releases:

AUD: AIG Manufacturing Index, MI Inflation Gauge, Building Approvals, Company Operating Profits, Commodity Prices
NZD: Overseas Trade Index
JPY: Capital Spending
GBP: Manufacturing
EUR: Italian Manufacturing, Final Manufacturing, Spanish Manufacturing
USD: Fed Chairman Speaks, Final Manufacturing PMI, ISM Manufacturing PMI, Construction Spending, ISM Manufacturing Prices

Source: ozforex