Talk amongst US lawmakers about suspending or removing the debt ceiling has not worried US Treasurys unduly but investors do appear to be paying a bit more attention to the risk of fiscal slippage in the US ahead. Volatility is elevated and stocks are wondering where the Santa Clause rally has gone in all of this, Scotiabank’s Chief FX Strategist Shaun Osborne reports.
Japanese monetary officials expressed “deep concern” about the recent weakening in the currency. The AUD is a relative underperformer on soft iron ore prices.”“US Personal Income and Spending data are expected to reflect healthy levels of consumption in November. Data will likely show PCE inflation edging up last month in core and headline terms—to 2.9% and 2.5% respectively. Sticky PCE data will support the outlook for the Fed to remain on hold in the near-term at least.