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Markets Eye US ISM Manufacturing PMI, FOMC Minutes

EMERGING MARKETS
  • French flash inflation data saw a significant December downside surprise, extending the trend of softer-than-expected data after Spanish and German CPI prints. Eurozone HICP will cross Friday.
  • Chinese bureaucrats are discussing plans to resume some imports of Australian coal after a more than two-year ban as relations between the nations improve. The news has prompted a greater than 2% rally for the Australian dollar with the Chinese Yuan also advancing around half a percent.
  • The USD has backtracked following the strong rally for the greenback on Tuesday, and may reflect a settling of markets after the volatile start to the year.
  • We see the first tier one US data of the year with today's ISM Manufacturing release. Markets will eye the release for any clues ahead of Friday's payrolls, which are expected to show jobs growth of 200k this month. Attention then turns to the release of the FOMC December meeting minutes.

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