Asian markets could trade mixed to negative as cyclical weakness and a stronger USD weighted on risk assets on Wall Street. There wasn’t a headline that drove the price action yesterday. Also worth noting that liquidity is thinner ahead of year-end holidays, and the week ahead will host major macro events such as FOMC and other major Central Banks decisions. These risk events will affect the price action for the coming days as participants hedge and place their bets for potential hawkish guidance from DM policymakers.
On the macro front, participants focus on any new information around the new COVID variant and on November’s US CPI. The report is unlikely to change participants’ views that the Fed will accelerate the taper at Wednesday’s meeting to give it rate hike optionality early next year.
