The British monthly GDP is announced on Friday at 09:00 MT time.
All traders await NFP
The NFP will be announced at 15:30 MT on January 10.
The last NFP release on December 6 provided very positive figures, bringing 266K added jobs to the economy, 3.5% unemployment rate, and 0.2% growth in average hourly earnings. The figures mostly surpassed market expectations and showed a significantly improved domestic picture for the US. Coupled with the positive news from the US-China trade talks, it led to a substantial rise of the USD. If the January 10 release referring to the industry performance in December brings another positive outcome, the USD will gain strength and provide a good market mood for the start of the year.
- If the NFP data is better than the market expectation, the USD will grow.
- If the NFP data is below market expectations, the USD will fall.
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.
The US unemployment claims are out on Thursday at 15:30 MT time.
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.