ZEW data from Germany eases concerns over economic slowdown in eurozone. Goldman Sachs raises Brent target to $63 from $60 after OPEC decision. Coming up: API's Weekly Crude Oil Stock data. Crude oil prices came under modest selling pressure during the early trading hours of the European session and the barrel of West Texas Intermediate dropped toward mid-$58s before gaining traction in the last hour. As of writing, the WTI was up 0.4% on the day at $59.25. Signs of life in the European economy The upbeat ZEW survey, which showed the Economic Sentiment both in Germany and the eurozone improved sharply in December, seems to have provided a boost to crude oil prices by easing concerns over the potential negative impact of a deep economic slowdown in the euro area on the energy demand. Meanwhile, Goldman Sachs announced that it raised the 2020 Brent oil average price forecast to $63 from $60 following the OPEC+ decision to deepen the oil output cuts by 500,000 barrels per day...

Increasing odds of a majority for Conservatives continue to underpin the GBP. GBP/USD seemed rather unaffected by mostly softer UK macroeconomic data. Investors now seemed reluctant ahead of the UK election and FOMC decision. The GBP/USD pair extended its sideways consolidative price action around mid-1.3100s, or multi-month tops, and moved little post-UK macro releases. Data released this Tuesday came in to show that the UK economic growth remained flat in October as compared to a modest growth of 0.1% expected, albeit marked a slight improvement from a 0.1% contraction recorded in the previous month. GBP supported by UK political optimism Adding to the disappointment, total industrial output recorded a modest growth of 0.1% as against 0.2% expected and -0.3% last. Conversely, manufacturing output arrived at +0.2% MoM in October versus 0.0% expectations and -0.4% booked in September. The softer UK data, however, failed to impress bearish traders or exert any meaningful downward..

German ZEW Economic Sentiment stands at 10.7 in Dec. vs. 0 expected. EUR/USD renews session highs and looks to regain the 1.11 handle. The German ZEW headline numbers for December showed that the Economic Sentiment Index jumped to 10.7 versus 0 expectations and -2.1 last. While the sub-index Current Conditions figure arrived at -19.9 in December versus -22.3 expected and -24.7 booked previously. ZEW President Professor Achim Wambach noted: “At first glance, the renewed substantial increase of the ZEW Indicator of Economic Sentiment may seem surprising. It rests on the hope that German exports and private consumption will develop better than previously thought. This hope results from a higher than expected German foreign trade surplus in October, alongside relatively robust economic growth in the EU in the third quarter and a stable German labor market. The rather unfavourable figures for industrial production and incoming orders for October, however, show that the economy is still ..

James Rossiter , head of global macro strategy at TD Securities, points out that the UK's Thursday election has been called the "most important election for a generation" as it could decide the path for Brexit over 2020 and beyond. Key Quotes “Our base case is for the Conservatives to retain power with an enhanced majority of at least 36 votes, enabling them to pass legislation by a comfortable margin – including the Brexit Withdrawal Agreement – without having to depend on support from other parties or rebellious factions within the Conservatives.” “FX: With GBP up sharply in recent weeks, we think our base case is fully priced - or very close to it. Confirmation of a solid Tory majority may see a knee-jerk move higher in cable, but is vulnerable to "sell the fact" profit taking and a shakeout of stale positions once the elections result is known. As such, we would not chase cable higher in the immediate aftermath even if sterling may be a buy on dips further out.”