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.
South Korea August exports add for 10th month
In August, South Korea's exports were supposed to add for a 10th straight month, according to Wednesday’s Reuters survey. It’s because global demand for tech products were still robust in spite of the fact renegotiation of a major trade pact with America might contribute to future risk.
The median prediction of the 12 experts surveyed was for exports to ascend 14.3% from 2016, slowing from July’s outcome of 19.5%. Import surge was seen decreasing to 11.4% having leapt 14.5% percent in July.
The previous week the United States and South Korea held a one-day video conference to discuss how to move forward in negotiations on the trade pact, though failed to reach come to a compromise.
July exports to the United States and China rallied 7% and 6.6% respectively against 2016. By the way, China appears to be South Korea's leading trade partner.
As for shipments to the EU, they demonstrated a 10.2% surge.
The same survey states that August’s year-on-year inflation was believed to hit 2.2%, intact from July.
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.
Jump in to know the key market events and trading ideas for this week!
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.