The dollar began the week (and yes, the FOREX was idling and completely stagnant the day before, while American traders were on vacation) with a fairly significant consolidation of -0.3% against the euro, which is advancing towards 1.0810.

The Dollar Index retreated -0.25% to 104.05: it fell back below 104.15 due to its decline against the Euro, the Pound (-0.25%) and more marginally against the Yen and Swiss Franc (-0.1%).
The Dollar only gained ground against the Yuan: +0.1% to 7.192.

In the US, the Conference Board's index of leading indicators fell by -0.4% (22nd consecutive month of decline), but this was 'less worse than expected', with 6 out of 11 sectors on a positive trajectory.

As a result, the Conference Board says it no longer expects a US recession this year, but warns that growth is likely to slow to near-zero levels in the second and third quarters.

In Europe, the construction sector rebounded by +0.8% sequentially and +1.9% year-on-year in the Eurozone in December, after two consecutive months of contraction, according to Eurostat (the European Union's statistical office).
But analysts at Capital Economics say they expect the construction sector to experience a bout of weakness this year, after the highs reached last spring.
'We expect construction to start declining again in 2024, mainly due to Germany's poor performance', stresses the London-based economic research firm.

The Yuan/Dollar parity was little changed on Tuesday, despite the PBOC's announcement of a 25 basis point cut in the prime lending rate for loans of more than five years, on which many lenders base their mortgage rates.

Beijing hopes that this sharper-than-expected reduction will invigorate the credit and property markets, reduce financial costs for companies and individuals, and contribute to economic recovery.



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