All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
German private sector surge reaches four-year minimum in December
In December, Germany's private sector expansion speeded down to a four-year minimum, as a survey disclosed. The given outcome suggested that surge in the EU’s leading economy might be poor in the final quarter.
Gauging the services and manufacturing sectors accounting for more than two-thirds of the German economy, IHS Markit's flash composite Purchasing Managers' Index went down from 52.3 to 52.2 in the previous month.
This year the index has sunk up to eight times, including the final four months of this year due to the fact that the German economy decelerates because of one-off effects, such as car registration bottlenecks and also more lasting headwinds from trade clashes.
As Chris Williamson, Markit experts pointed out, he actually expected the German economy to head north by up to 0.2% in the final quarter following a dive in the July-September period.
The expert added that while the EU’s number one economy wasn’t facing an immediate risk of a downtime, nevertheless, the outlook still appears to be dismal, especially as the possibility of the United Kingdom departing from the European bloc in 2019 without a clear agreement on future relations lurks on the horizon.
The expert stressed that the risk of a meltdown has headed north, although they still don't see it happening in their projections.
A number of bottlenecks in new car registrations because of the introduction of tougher pollution standards as well as a drought, which provoked disruptions to ferried deliveries of fuel and also other raw materials, have put powerful pressure on the leading economy of the European Union.
The expert is 100% assured that clearing the vehicle registration bottlenecks and also getting traffic on key waterways back to normal would undoubtedly ensure a much-needed push for the German economy.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
The market sentiment deteriorated because of the election uncertainty and worries about rising virus cases all over the world. Let's make some analysis!
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
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.