The British monthly GDP is announced on Friday at 09:00 MT time.
CBI: British factory orders manage to recover after October dive
In November, UK factory orders managed to recover, although previously in October they sagged steeply. It has been uncovered by a newly-released poll. The given outcomes soothed worries about the scale of a deceleration in the economy of the United Kingdom ahead of the country’s long-awaited departure from the European bloc already in March.
As the Confederation of UK Industry pointed out, its monthly order book balance managed to head north by up to +10 in contrast with October’s reading of -6, which turns out to be the steepest dive for two years.
On the other hand, November's reading appeared to be firmer than all estimates mentioned in a Reuters survey of reputable financial analysts.
As some financial analysts told, that’s so encouraging to observe a gradual improvement in the manufacturing sector after October's tough poll, with order books as well as output surge on the up. However, they drew attention to one crucial nuance. The told that the future prosperity of British manufacturers solely depends on getting the Brexit deal. They also pointed to the overwhelming message from business to the British cabinet – to make progress, without going backwards.
As a matter of fact, the previous week UK Prime Minister Theresa May finally agreed a withdrawal pact with Brussels. The given document will provide the United Kingdom with a transition period for departing from the European bloc.
Nevertheless, the newly-achieved pact is strongly opposed by May's Conservative Party. That’s a definite sign that the pact might fail in the country’s parliament in the nearer future.
By the way, manufacturing accounts for nearly 10% of the overall economic output of the United Kingdom.
Additionally, UK retailers are on the verge of spending tens of millions of pounds to back a disorderly Brexit.
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 USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
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.