Morning Juice – US Session Prep (31st December)

Sentiment
The dollar is on track for its biggest annual decline in eight years, weighed down by concerns over U.S. fiscal policy and the outlook for Federal Reserve interest rates. The greenback was little changed on Wednesday as the approaching New Year holiday dampened trading activity.

The dollar had edged higher on Tuesday after minutes from the Fed’s December meeting highlighted sharp differences among policymakers over whether inflation or unemployment poses the greater risk to the economy.

China offered support to yuan bulls heading into the New Year by allowing modest appreciation, while carefully managing gains to avoid pressuring exporters or encouraging excessive hot-money inflows.

Beijing also announced initial public spending plans totalling $51 billion to boost consumption and investment next year, moving early to support demand and cushion the economy against rising external headwinds.

Docket
08:30 ET
US Initial Jobless Claims Forecast 218k, Previous 224k Range 235k / 205k
US Continued Jobless Claims Forecast 1.902M, Previous 1.897M Range 1.938M / 1.885M

10:30 ET
EIA Crude Oil Inventories Forecast 0.5M, Previous 0.405M Range 2.6M / -2M

Good luck!