The Japanese yen remains the weakest major currency for the week and the month after release of inflation data in Asian session. National CPI core dropped -0.4% yoy in October, improved from -0.5% yoy in September and met expectations. Tokyo CPI core dropped -0.4% yoy in November, unchanged from October's reading and met expectations. The negative national CPI core reading marked the eighth straight month of annual decline in prices. BoJ adopted a new Yield Curve Control frame earlier this year aiming at pushing up inflation. But it's generally acknowledged that much time is still needed for meeting the 2% target. Nonetheless, recent sharp decline in Yen due to surge in global bond yields could have some inflationary effect for Japan and ease some pressure on BoJ. Also released in Asian session, Japan corporate service price index rose 0.5% yoy in October. New Zealand trade deficit narrowed to NZD -846m in October.
In Eurozone, ECB warned in a biannual report that US could become more "inward-oriented" under Donald Trump's administration. The report noted "higher political uncertainty may lead to more domestically focused, growth-hindering policy agendas." And, "this, in turn, could delay much-needed fiscal and structural reforms." ECB vice president Vitor Constancio said that "there may be some protectionist measures or not, every day we read contradictory news." And, "that's very risky in a situation where world trade is already very weak." And in the end "world trade and growth will suffer".
Looking ahead, UK will release Q3 GDP revision, index of services and CBI realized sales. US will release trade balance and wholesale inventories.