On Thursday, US jobless claims need consideration. Steady initial jobless claims would signal stable labor market conditions. A tight labor market supports wage growth and disposable income. Upward trends in disposable income could fuel consumer spending and demand-driven inflation.
The net effects could be an adjusted Fed rate path projection to curb consumer spending and tame inflation.
Chicago PMI numbers for December wrap up the year for the US dollar. Economists forecast a sharp fall, which could reignite fears of a hard landing.
The EUR
In a shortened week, Spanish economic indicators will influence the buyer appetite for the EUR/USD. On Friday, preliminary inflation numbers for December will garner investor interest.
The ECB remains committed to keeping rates higher for longer to tackle inflation. Sticky inflation numbers could support warnings from ECB Executive Board…
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