Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
In August British manufacturing PMI suddenly picks up pace
In August, manufacturing activity in Great Britain suddenly edged up, reaching a four-month maximum and spurring optimism over the UK economy, as industry data revealed on Tuesday.
According to a newly-issued report, market research group IHS Markit states that the previous month its British manufacturing PMI went up to a seasonally adjusted 56.9 from an outcome of 55.3 in July that was updated from an original 55.1.
Financial experts had expected the PMI to go down to 55.0.
On the index, a result higher 50.0 stands for industry expansion. On the contrary, if it’s below, it indicates contraction.
Aside from that IHS Markit stressed that the improvement took place because of a strengthening of fresh order inflows. Moreover, a broad-based expansion was observed across all product categories.
The research group also stressed that input price inflation inched up for the first time for seven months.
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.