Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
British consumer morale soars but gloom over finances lifts
In August, UK consumer morale edged up moderately, although stood subdued because households turned to be gloomier as for their finances, according to a poll published on Friday.
As a matter of fact, the monthly consumer confidence index from pollster YouGov as well as consultancy Cebr went up to 107.6 from July’s outcome of 107.2, backed by a soar in its measures of job security and also house prices.
However, consumers' perception of household finances definitely worsened for a fifth month in a row. That’s the longest run since YouGov records bust out 8 years ago.
In June 2016, the Brexit vote provoked a huge dip in the value of the British pound that has powered inflation, also affecting consumers' disposable income in 2017.
By the way, this year other measures of consumer confidence have declined too.
While the BoE actually expects trade as well as business investment to mostly withstand the slowdown in consumer confidence, evidently neither of these things added to the UK’s economic surge during the second quarter.
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.