Welcome to Black Friday which historically symbolised the day when retailers, traditionally operating in the red, finally moved in the black. Oh how this has changed but overnight German retail sales have disappointed in October, they dropped 1.5% m/m after a 1.3% gain in September, against expectations for a decline of only 0.5%.
The big mover overnight was USDJPY dropping a figure-and-a-half following strong Tokyo CPI numbers. Opening below 150 is a psychological level, the Tokyo CPI was 2.6% y/y in November, up from 1.8% in October and well ahead of forecasts for 2.2%. On a more structural note Australia passed a law that will split the RBA’s board into two entities, with one dedicated to monetary policy and the other focusing on its governance and operations. The reform may pave the way for it to reveal votes similar to the Fed, while raising uncertainty over the interest rate path as there will potentially be new board personnel.
As for the day ahead we have Eurozone CPI and the ECB releases consumer expectations survey for October, domestically we see Mortgage Approvals at 09:30. Markets have been thinner than usual due to the US Thanksgiving holiday with West Texas Intermediate crude rising 0.6% to $69.13 a barrel and Spot gold rising 1% to $2,664.14 an ounce being the highlights.
