EUR: Manufacturing New Orders Show Modest Growth Amidst Volatility

In November 2023, the adjusted real price of new manufacturing orders in the Eurozone edged up by 0.3% on a monthly basis, according to provisional data from the Federal Statistical Office (Destatis). However, a three-month comparison revealed a 4.5% decrease in orders for the period from September to November 2023. Excluding large-scale orders, there was a 0.6% dip in new orders in November compared to the previous month. Additionally, German exports saw a 3.7% increase, and imports rose by 1.9% in November 2023 compared to October 2023, according to seasonally adjusted figures. On a year-on-year basis, exports dropped by 5.0%, and imports fell by 12.2% compared to November 2022.

USD: Dollar Holds Steady as Markets Await U.S. Inflation Report

The U.S. dollar maintained stability on Monday as investors awaited a crucial U.S. inflation report later in the week for insights into the Federal Reserve’s monetary policy outlook. The greenback’s strength was supported by a rebound in U.S. Treasury yields, with traders adjusting their expectations for the pace and scale of Fed cuts in the coming year. A key reading on U.S. inflation scheduled for Thursday could influence these views. Recent data indicated stronger-than-expected hiring and wage growth in December, signaling a resilient labor market. However, a simultaneous survey revealed a notable slowdown in the U.S. services sector, presenting a mixed outlook for the world’s largest economy.

GBP: UK Employers Boost Pay Amid Lingering Inflation Concerns

In December, British employers increased wages and exhibited a partial recovery in hiring, suggesting persistent inflationary pressures in the labor market. The Recruitment and Employment Confederation (REC) survey, released on Monday, indicated a continued reduction in permanent worker hires, albeit less severe than in November. The Bank of England, which raised its benchmark interest rate to 5.25% in August, remains cautious about inflation and prolonged elevated borrowing costs. Official data reveals a pay growth rate of just over 7% in the three months leading up to October, prompting the central bank’s concerns about excessive wage growth.