UK Preliminary Quarterly GDP is out on Thursday at 09:00 MT time.
UK currency rallies vs. greenback
On Wednesday, the UK currency added versus its primary counterparts because investors paid attention to progress in negotiations between the European Union and Great Britain, as the United Kingdom is trying to escape from the EU with a trade pact arrangement at hand.
EU statesmen are currently negotiating a compromise Brexit deal that would see Britain preserve some of its customs arrangement.
According to some reports, notwithstanding differences between the EU and Britain a sound compromise could be reached at a crucial summit of European leaders next week.
The UK currency is being backed by expectations for a successful Brexit deal between Great Britain and the European bloc.
As a matter of fact, the currency pair GBP/USD managed to surge to its 10-day maximum ending up with a reading of $1.3171 in contrast with Tuesday’s outcome of $1.3142.
Besides this, the pressure on the Chinese Yuan keeps mounting against the backdrop of tariff tensions with America as well as signs of a decelerating economy. Market participants have been betting that the evergreen buck will soon buy a record amount of China’s currency above a major mark in the sand at about 7.00.
The currency pair USD/CNY stood still sticking with 6.9227, in contrast with Tuesday’s outcome of 6.9228. Meanwhile, USD/CNH hit 6.9315 soaring by 0.2%.
Market participants are afraid that a weakening Yuan could affect global markets because China’s stock market also demonstrates evident signs of fragility.
In addition to this, the evergreen buck, gauged by the USD index was intact keeping to 95.661. The given index turns out to be an indicator of a half-dozen dollar counterparts and it’s very influenced by the currency pair EUR/USD. The common currency reached $1.1504 versus the evergreen buck, in contrast with Tuesday’s reading of $1.1493.
Moreover, the currency pair USD/JPY slumped versus the greenback, hitting ¥113.23, compared to ¥112.95 in the previous session.
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.