Dual central bank interest rate decisions from the U.S.

The FOMC is expected to deliver a 25bp rate cut with potential dissents, reflecting the tension between inflation risks and weakening employment. Federal Reserve (Fed) Gov.

The Personal Consumption Expenditures (PCE) Price Index rose 2.8% on a yearly basis in September, the US Bureau of Economic Analysis (BEA) reported on Friday. This print followed the 2.7% increase recorded in August and came in line with the market expectation.

American consumer confidence edged higher in early December, as households grew more optimistic about current conditions and the broader economic outlook, according to preliminary data from the University of Michigan.

United States Michigan Consumer Expectations Index came in at 55, above expectations (51.2) in December

United States UoM 1-year Consumer Inflation Expectations declined to 4.1% in December from previous 4.5%

United States Core Personal Consumption Expenditures - Price Index (YoY) below forecasts (2.9%) in September: Actual (2.8%)

United States Personal Income (MoM) came in at 0.4%, above expectations (0.3%) in September

United States Personal Consumption Expenditures - Price Index (MoM) in line with forecasts (0.3%) in September

United States Core Personal Consumption Expenditures - Price Index (MoM) meets forecasts (0.2%) in September

United States Personal Consumption Expenditures - Price Index (YoY) meets forecasts (2.8%) in September

United States Personal Spending in line with forecasts (0.3%) in September

United States UoM 5-year Consumer Inflation Expectation fell from previous 3.4% to 3.2% in December

European Central Bank (ECB) and Bank of France Governor Villeroy de Galhau said on Friday that their current "good position" of ECB policy does not mean a comfortable or fixed one at a conference in Paris.

Canada delivered another major jobs surprise with 54k new positions, pushing the jobless rate sharply lower. Markets priced in future hikes as yields spiked, though analysts still expect the Bank of Canada (BoC) to hold steady through 2026, TDS' economists Robert Both and Emma Lawrence note.

Turkey Treasury Cash Balance rose from previous -195.879B to 56.39B in November

The Pound Sterling (GBP) trades little changed in subdued market conditions, with sentiment influenced by broader currency trends.

Canada Unemployment Rate below expectations (7%) in November: Actual (6.5%)

Canada Net Change in Employment registered at 53.6K above expectations (-5K) in November

Canada Participation Rate dipped from previous 65.3% to 65.1% in November

The TTF Natural Gas price continued to slide this week. The 1-month forward is currently trading below EUR 27 per MWh, which is the lowest level in 20 months, Commerzbank's commodity analyst Carsten Fritsch notes.

The Swiss National Bank (SNB) is expected to maintain its policy rate at 0% despite weak inflation and GDP growth, citing high barriers to negative rates.

Mexico Consumer Confidence s.a fell from previous 46.1 to 44.2 in November

Mexico Consumer Confidence declined to 44 in November from previous 45.7

The Bank of Japan (BoJ) is set to raise interest rates to 0.75% this month, sending USD/JPY lower as the Japanese Yen (JPY) strengthens.

US Dollar (USD) weakness is expected to continue into year-end, supported by seasonal flows and stable Treasury markets. Commodity currencies are performing well, while EUR/USD and USD/JPY target 1.18 and 152, respectively, amid subdued FX volatility, ING's FX analyst Chris Turner notes.

The United States (US) will see the release of the preliminary estimate of December’s University of Michigan's (UoM) Consumer Sentiment Index on Friday.

Japan's economy minister, Minoru Kiuchi, said during Friday’s European trading session that the government will not interfere in Bank of Japan’s (BoJ) decisions on monetary policy.

China’s Commerce Ministry stated during the European trading session on Friday that the government aims to revive the overall demand, laid out plans to propel the same.

The Pound Sterling (GBP) remains firm, though analysts view the move as a short squeeze rather than a fundamental reassessment of UK risk. While GBP/USD may rise into year-end, BoE easing should keep EUR/GBP supported around 0.88, ING's FX analyst Chris Turner notes.