Investors are feeling much better about the fact that President Trump has held off from announcing any official tariffs. The US dollar has come under pressure as a consequence, while US equities have been pushing back towards record highs.
Elsewhere, ECB President Lagarde was on The Wire saying the disinflationary process was continuing and that she was confident inflation would slow to target in 2025. She also added Europe should be prepared for any US tariffs but wasn’t overly concerned about any inflation export from the US.
UK public finance data showed the UK government borrowing more than expected in December.
Looking ahead, the economic calendar is rather quiet with only Canada producer prices standing out, but we do get more central bank commentary from the likes of ECB’s Rehn, Nagel, and another appearance from Lagarde.
The market will also continue to focus on all things President Trump.
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