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.
Germany’s February industrial output leaps
In February, German industrial output jumped by 0.7% because mild weather really backed an ascend in construction activity, although manufacturing production went down, providing little hope to the EU’s number one economy after a pack of downbeat news.
Germany is actually suffering from trade friction as well as Brexit uncertainty having avoided recession in 2018. On Thursday, key economic institutes slashed their estimates for this year’s surge and warned a long-term uptrend had already come to its end.
The ascend in output surpassed expectations for a 0.5% rally on the month. In fact, January's outcome was updated upwards to demonstrate no change from a previously posted 0.8% tumble.
Germany’s industrial sector is anticipated to stay subdued considering the dismal development in orders as well as the negative business climate. Moreover, the construction sector is still soaring, while the relatively mild weather also made a contribution to the decent outcome in February.
In February, Germany’s industrial orders went down by the biggest margin for over two years, diving by 4.2%, as Thursday’s data disclosed.
The total gain in industrial output was underpinned by a 6.8% leap in construction. As for manufacturing output, in February, it slumped by 0.2%.
On Thursday, the country’s key economic institutes had their estimates for 2019 surge slashed by more than half. They also warned that the German economy could speed down even more if the United Kingdom quits the EU without a deal.
Germany is currently in its 10th year of economic expansion, although narrowly dodged a meltdown at the end of 2018 and also reported its weakest surge for five years last year. This export-orientated economy is being speeded down by the trade as well as Brexit headwinds.
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!
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.