The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
China boasts more room to tackle its debt
Ascending corporate revenues are giving Chinese policymakers enough room to do more to tame the country’s surging debt issues without inflicting key damage on the national economy.
Revenues are soaring even though financial conditions are definitely tightening in some crucial areas of the Chinese economy. For instance, lending rates have tacked on, regulators have already clamped down against risky lending. Moreover, they have moved to take the heat out of the country’s property sector.
The Chinese economy is also steadily on course to meet the government's GDP surge objective in 2017 of approximately 6.5%.
Although it’s far from certain the Chinese authorities will keep tightening credit conditions. Some financial experts expect policymakers to move that way as soon as President Xi Jinping manages to consolidate power at a major five-yearly Communist Party Congress later in 2017.
By the way, the Chinese government has made cutting the country’s debt burden a number one priority in 2017 after credit tacked on following the global financial downtime.
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.
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.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.