• Economic data have been giving some conflicting signals recently.
• The mood in markets has improved recently, with the decline in inflation in the US and weak economic data in Europe resulting in a scaling back of rate hike expectations, helping risk appetite.
• We would be very slow, though, to sound the all clear for markets despite the clear improvement in risk appetite, or to suggest that the dollar has embarked on a prolonged weakening trend.
• In the very near term, optimism about central banks moving to a less hawkish stance and that inflation has peaked could see stock markets make some further gains.
• This week, the flash PMIs for November in the Eurozone, UK and US will be the highlight.
• Elsewhere in a holiday shortened week in the US, for Thanksgiving, the release of the November FOMC meeting minutes will garner attention.
• In the Eurozone, the release of the latest monetary policy meeting account will also be of interest for the same reason.

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