1. IntroductionSince U.S. stocks pulled back from their late-October highs, they have staged a rebound after hitting a cyclical low in mid-to-late November. Currently, the S&P 500 has largely recouped

Japanese Chief Cabinet Secretary Minoru Kihara said on Thursday that the government will closely monitor the impact on the Japanese economy of United States (US) financial conditions following Federal Reserve (Fed) rate cut.

Australia’s Unemployment Rate steadied at 4.3% in November from 4.3% in October according to the official data released by the Australian Bureau of Statistics (ABS) on Thursday. The figure came in below the market consensus of 4.4%.

Australia Part-Time Employment up to 35.2K in November from previous -13.1K

Australia Participation Rate below expectations (67%) in November: Actual (66.7%)

Australia Employment Change s.a. below forecasts (20K) in November: Actual (-21.3K)

Australia Unemployment Rate s.a. registered at 4.3%, below expectations (4.4%) in November

Australia Full-Time Employment down to -56.5K in November from previous 55.3K

United Kingdom RICS Housing Price Balance above forecasts (-21%) in November: Actual (-16%)

Japan BSI Large Manufacturing Conditions Index (QoQ) came in at 4.7, above forecasts (4.1) in 4Q

Japan Foreign Investment in Japan Stocks declined to ¥96.8B in December 5 from previous ¥655.6B

New Zealand Manufacturing Sales increased to 1.1% in 3Q from previous -2.9%

The Federal Reserve (Fed) went ahead with a 25 basis points rate cut, taking the target range to 3.50–3.75%. But the tone around the decision mattered just as much as the move.

The Federal Open Market Committee’s (FOMC) latest dot plot, released on Wednesday, indicates that interest rates will average 3.4% by the end of 2026, in line with the September projection.

GBP/USD climbs after the Federal Reserve decided to cut rates as expected on a 9-3 vote split, that witnessed two members voting for holding rates, while Fed Governor Stephen Miran voted for a 50-basis points rate cut. At the time of writing, the pair trades at 1.3350 up 0.46%

United States Fed Interest Rate Decision meets forecasts (3.75%)

United States Monthly Budget Statement registered at $-173B above expectations ($-205B) in November

White House Economic Adviser Kevin Hassett stated that the Federal Reserve (Fed) has plenty of room to cut rates later and will likely need to do so again. The front-runner to be the Federal Reserve's next chair said in an interview on Fox News' "America Reports" program on Wednesday.

As widely anticipated, the Bank of Canada (BoC) kept its benchmark interest rate at 2.25% at its event on Wednesday.

Canada BoC Interest Rate Decision meets expectations (2.25%)

The Japanese Yen (JPY) is consolidating above its late-November lows as yield spreads tilt modestly against it.

United States Employment Cost Index below expectations (0.9%) in 3Q: Actual (0.8%)

United States MBA Mortgage Applications climbed from previous -1.4% to 4.8% in December 5

India M3 Money Supply up to 9.9% in November 24 from previous 9.8%

European Central Bank (ECB) President Christine Lagarde said in an interview at the Financial Times (FT) Global Boardroom Conference in London during the European trading session on Wednesday that the current monetary policy is in good shape and the central bank will might revise growth projections

Portugal Global Trade Balance rose from previous €-8.94B to €-8.458B in October

South Africa Retail Sales (YoY) dipped from previous 3.1% to 2.9% in October

The United States (US) Federal Reserve (Fed) will announce its interest rate decision on Wednesday, with markets widely expecting the US central bank to deliver a final 25 bps cut for 2025.

China’s November CPI rose to 0.7% y/y, matching consensus, while core inflation held at 1.2% and PPI stayed in deflationary territory, keeping domestic demand weak and supporting the ongoing USD/CNH downtrend, BBH FX analysts report.

United Kingdom 10-y Bond Auction climbed from previous 4.608% to 4.613%