The British monthly GDP is announced on Friday at 09:00 MT time.
Transfer union could provoke end of euro zone
Evidently, turning the euro zone into a so-called "transfer union", where richer member states are bound to finance poorer ones could potentially provoke the end of the single currency bloc. That’s what the head of Germany's Ifo economic institute told in an interview on Wednesday.
Euro parliament, EU finance minister, euro zone budget - all those things are unable of solving the problems of the euro zone. Moreover, they can even make things much worse, as Ifo chief Clemens Fuest revealed during a news conference just to outline his exclusive recommendations for the next coalition government after September’s election.
Some countries are backing an expansion of transfers in the euro zone, and it’s very dangerous, Fuest stressed. He added if Europeans look at what took place in Catalonia, they’ll get a taste of what really threatens the euro zone if they dare to convert the currency union into a sort of transfer union. In this case small and prosperous countries will immediately break up with the EU.
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.
The US unemployment claims are out on Thursday at 15:30 MT time.
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 US dollar’s weakness offered a boost to emerging-market currencies and oil.