US consumer confidence in focus with oil prices collapse in limelight – Danske Bank

FXStreet (Delhi) – Research Team at Danske Bank, suggests that in the US, consumer confidence data as well as the Case-Schiller house price index are due to be released.

Key Quotes

“Focus continues to be on the oil price. Yesterday, the combination of a decline in the oil price and 'dovish' comments from the ECB's Yves Mersch sparked a rally in European government bonds ahead of the New Year.

The oil price fell yesterday as Iran repeated its goal of boosting exports after sanctions on the country are lifted. Mersch stated that the ECB QE will run 'is long as necessary...the toolbox is not empty' etc. Hence, the ECB continues to be ready to do more if needed.

As we are approaching the New Year, liquidity in the markets will be scarce. Hence, we expect activity to be very modest ahead of it.”