Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
The US retail sales are out!
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Instruments to trade: EUR/USD, USD/CAD, USD/JPY, GBP/USD
If everything is good, people have money. If they have money, they buy things. If they buy things, companies make good sales and get money as well. More money from companies – more invested back into the economy. This is one of the circles of how the money goes around the economy participants, but everything starts with people buying things. Since May, retail sales have been going down in the US. The last indicator was 0.6% - less than the expected 1%. Obviously, the market takes that as a disappointment and presses on the US dollar. If the same happens this week, the US dollar will see less ground to expand – again.
- If the monthly sales are higher than though, the USD will rise.
- Otherwise, it will get weaker.
Similar
Strong USD on Tuesday
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
Will the USD grow with the US labor market?
The US unemployment claims are out on Thursday at 15:30 MT time.
Latest news
ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Markets await Biden to unveil "trillions dollars"
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.
USD came under selling pressure
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
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