On Friday we will get a look at the Producer Price Index which is expected to show literally no inflation for November while it is expected to show 0.8% annualized inflation. This will basically ensure that interest rates will remain on hold
Those who are looking for inflationary pressures may find a bit comfort in the core PPI which excludes food and energy where inflation is expected to show a 0.1% increase in November for an annualized 1.4%. This is still all well contained, but should we see this figure approach the 2.0% we may get some Fed statements from the hawks. Overall I think the US Dollar will react bearish as this will translate into a zero interest rate environment for a very long time.