Financial market will continue to keep a close watch on the development in the Chinese money market. Offshore interest rates have shut up in recent weeks, suggesting the depreciation pressure has mounted on the CNH to the extent that the People's Bank of China is stepping in to the market to defend it, using FX intervention.
The oil market will look for comments from the 22 producers taking part in the recent agreement to cut production from 1 January 2017. It will also take notice of the US inventory figures released by the American Petroleum Institute tonight to see whether inventories have corrected last week following the large build two weeks ago.
Geopolitical risk will gain attention today as the market will monitor potential ramifications of the shooting of a Russian ambassador in Turkey yesterday.
It is a thin data calendar today. The confidence indicators due for release in Sweden are likely to present another upbeat reading, but will not have an impact on market pricing of the Riksbank ahead of the monetary policy meeting tomorrow.
To read the entire report Please click on the pdf File Below