USD
Industrial production surged in November by the most since May 2010 as U.S.
assembly lines churned out more consumer goods and business
equipment, signalling manufacturing is bolstering economic growth.
The 1.3 percent gain in output at factories, mines and utilities followed
a 0.1 percent increase the prior month that was previously reported as a
decline, figures from the Federal Reserve showed today in Washington.

USD
Industrial production surged in November by the most since May 2010 as U.S.
assembly lines churned out more consumer goods and business
equipment, signalling manufacturing is bolstering economic growth.
The 1.3 percent gain in output at factories, mines and utilities followed
a 0.1 percent increase the prior month that was previously reported as a
decline, figures from the Federal Reserve showed today in Washington.
Manufacturing rose 1.1 percent, the most in nine months, and output at
utilities was the strongest in almost eight years.

The Fed’s report showed the biggest gain in consumer-goods production in 16
years, indicating rising auto sales and a pick up in retail purchases
are helping factories work through a slowdown in global markets. More hiring, slumping gasoline
prices and a jump in confidence add to signs of improving household demand and
sustained output.

RUB
Russia’s central bank made a drastic interest rate move overnight, raising its
key rate from 10.5% to 17%. The bank said the move was to try to ease the
rouble’s recent fall in value.

The rouble hit further record lows on Monday and Russian shares fell, hurt by
investor concern about possible new U.S. sanctions over the Ukraine crisis.The
Russian currency weakened beyond 59 roubles per dollar for the first time.At
midday it was around 2.3 percent weaker at 59.53 against the dollar and 2.4
percent weaker at 74.04 versus the euro. A modest recovery in oil prices (oil
bounced back from a five-and-a-half year low) prevented further loses. The sharp
fall in oil has together with sanctions been the main cause of the rouble’s
over 45 percent slide against the dollar this year.

Russia’s central bank said on Monday it had conducted $478 million worth of
Forex market interventions on Dec. 11, taking the total the bank has spent
defending the currency this month to almost $6 billion.
Last week’s interest rate rise failed to calm the situation. Analysts believe
the scale of the slump could prompt the Kremlin into capital controls. Fears
over companies’ ability to service their debts hit corporate bond prices today,
and wiped over 6% off the RTS index of leading shares. 

INR
India’s rupee slumped to an 11-month low as stocks declined and on speculation
importers stepped up dollar purchases before the year end. Dollar demand from
local oil companies to meet their year-end payments and a sell-off in equities
is weighing on the rupee. The rupee is now starting to succumb to the stronger
dollar sentiment as a combination of market participants reducing their long
rupee exposure, together with thin liquidity, given we are nearing the end of
the year, has exacerbated the moves.

Key Announcements:
GBP – 09:00: BOE’s Governor Carney Speech
GBP – 09:30: UK Consumer Price Index (Nov) expected to remain the
same at 1.5%
EUR – 10:00: German ZEW Economic Sentiment Survery (Dec) expected to rise to 20
USD – 14:45:  Markit Manufacturing PMI expected to rise to 56.4

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