Thursday Briefing: From DXY, Gold to Latest FX Headlines; Jan 12, 2023

• The U.S. The biggest reason for the easing in inflation came from a sharp drop in gasoline prices, which are now lower on a year-over-year basis.
  U.S. Consumer price index fell 0.1% in December, meeting expectations, for the biggest drop since April 2020.
• Excluding food and energy, core CPI rose 0.3%, also in line with estimates.
• Ukraine said its troops were still holding out despite heavy fighting on a battlefield covered with bodies in a salt mining town in eastern Ukraine, where Russian mercenaries have claimed Moscow’s first significant gain in half a year.
• People in China worried about spreading COVID-19 to aged relatives as they planned returns to their home towns for holidays that the World Health Organization warns could inflame a raging outbreak. The Lunar New Year holiday comes after China last month abandoned a strict anti-virus regime.
• The seventh consecutive atmospheric river since Christmas dumped more rain on Northern California, offering little relief for a state already battered by floods, gale force winds, power outages and evacuations of entire towns.
• The U.S. health department extended the COVID-19 pandemic’s status as a public health emergency, allowing millions of Americans to continue receiving free tests, vaccines and treatments.
• U.S. airlines said they expect operations to return to normal as the Federal Aviation Administration scrambles to pinpoint the cause of yesterday’s computer outage that grounded flights nationally and to prevent it from happening again.
• Goldman Sachs began laying off staff in a sweeping cost-cutting drive, with around a third of those affected coming from the investment banking and global markets division, a source familiar with the matter said.
• More than half of Germany’s companies are struggling to fill vacancies due to a lack of skilled workers, the German Chambers of Commerce and Industry said, in the latest sign of growth headwinds hitting Europe’s largest economy.

Source: Reuters

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