USD’s rally takes a pause, while riskier assets are modestly rising.
UK Inflation Report Hearings
|The Bank of England’s Governor and several members of the Monetary Policy Committee will testify on inflation and economic outlook before the Parliament’s Treasury Committee at 12:00 MT time on February 20.|
|It is important not only to listen but hear. This event can get the GBP in motion. Any direct comments about the currency market will be especially important. The hearings should give traders some clues about the central bank’s future monetary policy.|
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.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.