Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
British construction PMI reaches 1-year dip in August
In August, British construction sector activity suddenly went down, reaching a one-year minimum and also affecting optimism over the UK economy, as industry data revealed on Monday.
Market research firm IHS Markit along with the Chartered Institute of Purchasing & Supply reported that the previous month their British construction purchasing managers' index went down to a seasonally adjusted 51.1 from July’s outcome of 51.9.
Financial experts had expected the index to soar to 52.0 in August.
By the way, on the index, a result above 50.0 traditionally stands for expansion, while an outcome below 50.0 suggests contraction.
IHS Markit stressed that a sturdy ascend in house building was compensated by a marked dip in commercial work and also added that new business edged down for the second month running.
Reacting to the report, the currency pair GBP/USD hit 1.2942 versus 1.2945 ahead of the publication.
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 Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.