Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
Optimism dips at British services companies
Optimism across the UK services sector went down for the last three months to August, and British companies perceived the pinch from ascending costs notwithstanding fresh business mostly held up, as an industry poll revealed on Tuesday.
The Confederation of British Industry's quarterly informed that the services sector, producing the vast bulk of economic output in Great Britain, demonstrated that confidence dipped in both consumer and business sectors.
The previous week official data showed Britain's economy faced weakness on all fronts for the three months to June. Shoppers were definitely affected by the pound's dip, exports unable to fill the gap as well as business investment suppressed by Brexit uncertainty.
While the overall volume of activity at business as well as professional services companies strengthened to its highest value since May last year for the last three months to August, it slumped in consumer services companies.
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.