From Eurozone, yesterday, Spanish CPI and M3 Money Supply data was published. According to the flash estimate of the CPI, consumer prices registers a -0.3% variation in December, as compared to the month of November. According to the flash estimate published by the INE, the annual inflation of the CPI in December 2015 is 0.0%. Analysts were predicting increase to 0.1%. This indicator provides a preview of the CPI that, if confirmed, would imply an increase of three tenths in its annual rate, given that in November this change was ‒0.3%.
The annual growth rate of the broad monetary aggregate M3 decreased to 5.1% in November 2015, from 5.3% in October, averaging 5.1% in the three months up to November. Smaller decrease to 5.2% was anticipated. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate including currency in circulation and overnight deposits (M1) decreased to 11.2% in November, from 11.8% in October.
In the US session Pending Home Sales figures were released. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 0.9 percent to 106.9 in November from an upwardly revised 107.9 in October but is still 2.7 percent above November 2014 (104.1). Analysts were expecting increase 0.6% increase. Although the index has increased year-over-year for 15 consecutive months, last month's annual gain was the smallest since October 2014 (2.6 percent).
With no data releases from Eurozone tomorrow and with some of the banks being close due to observance of New Year's Eve we can expect less volatile European part of the session. In the US session Unemployment Claims and Chicago PMI figures are scheduled for a release. Unemployment Claims are expected to increase to 274,000, while Chicago PMI should incline to 50.4.
Figures to watch:
Unemployment Claims (Thursday 14:30)
Chicago PMI (Thursday 15:15)
