Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
Trade the British pound on economic indicators
The levels of British GDP and manufacturing production will be released on January 11 at 11:30 MT time.
Last time the British economy grew by 0.1%, as it was expected by analysts. As for the level of manufacturing production, December's release showed a decline of 0.9%. This was a lower level than the analysts predicted. If this time the actual levels of indicators outperform the forecasts, the British pound will be supported.
• If the actual data of GDP and manufacturing production are higher, the GBP will rise;
• If the actual data of GDP and manufacturing production are lower, the GBP will fall.
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 US dollar’s weakness offered a boost to emerging-market currencies and oil.
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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.