FOREX: Construction PMI Underscores Weak S/T UK Growth Concerns

• Eurozone headline CPI inflation was close to rounding higher to 2.5% with a 2.44% Y/Y reading in Dec (cons 2.4), up from 2.24% in Nov.
• Core CPI however was very much in line, at 2.71% Y/Y in Dec (cons 2.7) after 2.72% in Nov.
• See table below of unrounded Eurozone CPI figures: 

• Guidance: MS+135bps area (was MS+140bps area)
• Size: EUR Benchmark (MNI expects E1.0-1.5bln)
• Books in excess of E2.7bln (inc E505mln JLM interest)
• Maturity Date: 14 April 2055
• Settlement Date: 14 January 2025 (T+5)
• Joint Bookrunners: Deutsche Bank, Erste Group, Goldman Sachs Bank Europe SE, HSBC, J.P. Morgan (B&D) and OTP Banka Slovenia
• ISIN: SI0002104873
• Timing: Books remain open, today’s business

From market source

A light dovish reaction for EUR STIRs following this morning’s national and Eurozone CPI readings.

• 101.5bp of ECB cuts now priced through ’25 vs. ~100bp early today. 24.5bp of easing priced for this month’s meeting.
• Euribor futures flat to +4.0
• To recap the data, softer-than-expected French prints lessened the upside risks to the Eurozone readings (countering the impact of Monday’s German CPI data).
• The Eurozone readings then matched the median expectations from the BBG surveys.