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Key Points
- Chinese President Xi Jinping emphasized the need for more proactive fiscal policies and moderately accommodative monetary policies. The Politburo also stressed the importance of actively boosting consumption, enhancing investment efficiency, and expanding domestic demand in all areas.
- Markets interpreted this as a signal that China might implement stronger easing measures.
- On December 11, the U.S. November CPI will be released. Markets expect the Core CPI to rise by 0.3% month-on-month.
- The Bank of Canada is expected to cut rates by 50 basis points, while the European Central Bank is projected to lower rates by 25 basis points.
- The Reserve Bank of Australia has decided to hold its policy rate steady at 4.35%.
Key Economic Indicators
- December 10: Germany’s November Consumer Price Index
- December 11: U.S. November CPI, Bank of Canada interest rate decision
- December 12: ECB interest rate decision, U.S. November Producer Price Index
- December 13: U.K. October GDP
USD/JPY Chart Analysis
After encountering resistance at the 157 level, USD/JPY experienced a significant drop over the week, reaching the vicinity of 148.500. However, it rebounded successfully and recovered to the 151 level. Nevertheless, with the 152 level acting as resistance, it remains uncertain whether the pair can break through this area.
Given the abundance of market-moving events this week, determining the direction is challenging. If the pair holds above the 149 level, it could rise toward 154, while a decline below 149 could see it drop as far as 140.
