Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
German private sector output surge drops to 6-month minimum in July
In Germany, in July, private sector output expanded at the slowest tempo for six months, thus suppressing optimism over the euro zone's key economy, as Monday’s preliminary data revealed.
Market research group Markit informed that its Flash German Composite Output Index, gauging the combined output of both the manufacturing as well as service sectors went down from June’s outcome of 56.4 to 55.1 in July, thus missing predictions for 56.3.
The total rate of expansion turned to be the weakest since January, a tendency reflected in both services business activity and manufacturing output.
In Germany, this month the preliminary manufacturing purchasing managers’ index tumbled to a three-month minimum of 58.3 from June’s outcome of 59.6. Experts had expected it to go down to 59.2 in July.
In July, the flash services purchasing managers’ index went down to a six-month minimum of 53.5 from June’s reading of 54.0, ruining hopes for an outcome of 54.3.
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.