Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
American job surge seen accelerating
In June, American employers increased hiring and lifted wages for employees. These are signs of labor market strength, which could keep the major US bank on course for a third interest rate lift this year.
As a Reuters poll of economists states, on Friday the Labor Department's employment report will most likely show that nonfarm payrolls grew by 179,000 jobs the previous month, having gained 138,000 in May.
The unemployment rate is supposed to remain intact at a 16-year minimum of 4.3%. This year it has sunk five-tenths of a percentage point. Moreover, it fits the most recent Fed median prediction for this year.
Financial experts tell that labor market buoyancy could also stimulate the Fed to unveil plans to start cutting its $4.2 trillion portfolio of Treasury bonds as well as mortgage-backed securities already in September.
In June The Fed lifted its benchmark interest rate for the second time in 2017. However, with inflation dropping further below the central bank's 2% objective in May, financial experts expect another rate lifts only in December.
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Strong USD on Tuesday
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.
Will the USD grow with the US labor market?
The US unemployment claims are out on Thursday at 15:30 MT time.
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ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Markets await Biden to unveil "trillions dollars"
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.
USD came under selling pressure
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
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