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.
The US labor market is in focus again
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
Once a week, the US Department of Labor publishes how many people filed for unemployment insurance. This is the most recent update on the employment data in the United States. Despite quite optimistic NFP last week when the indicator increased by 4 800K (vs. the forecast of 3 037K), the weekly unemployment claims for July 2 reached a higher level than expected. While analysts anticipated it to increase by 1 350K, the actual figures showed a rise of 1 427K.
- If the actual level of unemployment claims is lower, the USD will rise;
- If the actual level of unemployment claims is higher, the USD will fall.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
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.
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.