The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
A block of the key US statistics
The United States will make two important data releases at 15:30 MT time on September 27. The first indicator, durable goods orders, is a leading indicator of American production. It reflects the change in the total value of new purchase orders placed by manufacturers for durable goods. The higher the indicator’s growth, the better for the USD. The last time this indicator was released, it disappointed traders. It turned out that the demand for long-lasting goods produced by US factories fell in July because of a decline in aircraft sales. Naturally, the market will now be eager to see whether the situation has improved or not. The second event is the third and the final release of American GDP growth for the second quarter. According to the previous estimate of the US economic growth, the nation’s economy is performing at its best in nearly four years. A confirmation of that will be bullish for USD.
• If the data is greater than the forecast, the USD will rise.
• If the data is weaker than the forecast, the USD will fall.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.