Economic data has generally been positive - BBH

Analysts at BBH note that the economic data has generally been positive, suggesting that the high income economies finished last year with some momentum that may carry over into the New Year.  

Key Quotes 

“Yesterday's US manufacturing ISM showed a strong rise in new orders and export orders (despite the sharp rise in the dollar in Q4).”

“Today Japan reported the strongest manufacturing PMI in a year and the eurozone composite PMI reading of 54.4 in December is the best in more than five years.  Manufacturing, as we saw yesterday, was stronger than the flash estimate, while the slippage in services was less than estimated.  Also, following on the heels of yesterday's robust German and French inflation reports, the eurozone aggregate measure saw headline CPI rise to 1.1% from 0.6% in November, while the core rate ticked up to 0.9% from 0.8% (it bottomed near at 0.6%).”

“Yesterday's UK manufacturing PMI was stronger than expected.  It has been followed by a stronger construction PMI (54.2 from 52.8).  Separately, the UK reported that mortgage approvals reached an eight-month high in November.  News that the UK's envoy to the EU (Ivan Rogers) resigned (term ends in October) is seen as a loss of a voice of moderation.  He has been critical of the government's preparations for Brexit negotiations.  In our read, developments that favor what has been dubbed a hard Brexit are likely negative for sterling.  However, the consolidative tone today is prevailing.  Sterling is practically unchanged against the euro.  The cross appears stuck in a GBP0.8460-GBP0.8540 range.”