The US NFP report will come out on January 8 at 15:30 MT time.
American consumer confidence and housing data indicate decelerating economy
In February, American homebuilding went down more than anticipated due to the fact that construction of single-family houses went down to an almost two-year minimum, providing more evidence of a steep deceleration in economic activity early in 2019.
Fears over the US economy were also underscored by other Tuesday’s report that revealed that consumer confidence ebbed in March, with US households a bit gloomy about the American labor market. Well, the American economy is experiencing soaring headwinds, such as decelerating global surge, decreasing fiscal stimulus, trade tensions as well as uncertainty over the UK’s departure from the EU.
Those fears made a contribution to the key US bank’s decision the previous week to bring its three-year stance to tighten its monetary policy to a steep end because it gave up projections for any interest rate lifts in 2019.
As a matter of fact, home starts went down by 8.7% to a seasonally updated annual rate of about 1.162 million units in February, as the Commerce Department informed. The percent tumble turned out to be the most impressive for eight months, and bad weather could have contributed to the steep decrease in homebuilding in February.
In February, homebuilding declined for three of the four regions. As for housing starts data for December and January, they were updated upwards. Besides this, building permits went down by 1.6% to 1.296 million units last month. While for permits, it happened to be the second monthly dive in a row, they’re currently outperforming starts that drops a hint at a pickup in homebuilding in the months ahead.
Financial analysts had hoped housing starts would slip to a tempo of 1.213 million units last month.
FOMC Meeting Minutes will be released on January 6 at 21:00 MT time.
USD: all attention to Manufacturing PMI Instruments to trade: EUR/USD, USD/JPY, USD/CHF US ISM Manufacturing PMI will be out on January 4 at 17:00 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.