UK DATA: CPI Due at 7:00GMT: Where Will Air Fares Land?

See the full document here for a look ahead to the next two weeks of issuance, a recap of last week and a summary of 2026 funding plans released so far.

• There are no scheduled operations for this week. We still await a 2026 funding plan from Greece and France’s final funding plan. Both are expected before Christmas.
• NOMINAL FLOWS: This week will see no redemptions and coupon payments for the week of E0.2bln. This leaves estimated net flows for the week at negative E0.2bln, versus negative E6.5bln last week.
• We summarise 2026 funding plans from Austria, Belgium, the ESM/EFSF, the EU, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

• RES 4: 0.8865 High Nov 14 and a bull trigger   
• RES 3: 0.8840 High Nov 20
• RES 2: 0.8818 High Nov 26
• RES 1: 0.8802 High Dec 2 and a key near-term resistance
• PRICE: 0.8746 @ 06:44 GMT Dec 22
• SUP 1: 0.8735/21 Low Dec 18 / 9
• SUP 2: 0.8706 76.4% retracement of the Oct 8 - Nov 14 bull leg
• SUP 3: 0.8670 Low Oct 21   
• SUP 4: 0.8656 Low Oct 8 and a key support  

The bull cycle in EURGBP that started Dec 9 remains in place and highlights a possible reversal of the Nov 14 - Dec 9 corrective phase. Key short-term support has been defined at 0.8721, the Dec 9 low. A break of this level would signal scope for a deeper retracement,and open 0.8706, a Fibonacci retracement. Initial firm resistance to watch is unchanged at 0.8802, the Dec 2 high. Clearance of this hurdle would be a bullish development.

The yuan is expected to gradually appricate to around 6.0 from the 7.0 level against the U.S. dollar over the next decade, Huang Qifan, former mayor of Chongqing city, said. By moderately appreciating the exchange rate, China can enhance the yuan’s purchasing power, promote import growth, and boost the goal of doubling per capita GDP in U.S. dollar terms in the medium to long term, said Huang. He also called for reducing the scale of export tax rebates to allow more fiscal resources to be used for social welfare and innovation development. (Source: Beijing Business Today)