UK Preliminary Quarterly GDP is out on Thursday at 09:00 MT time.
UK pound goes down
On Monday, the UK pound headed south in Asia on worries over Brexit, and the evergreen buck rallied because this week investors closely watched a fresh batch of American economic data.
The currency pair GBP/USD hit 1.2971, diving by about 0.3%. this currency pair briefly tumbled to an almost three-week minimum earlier in the day.
On Tuesday, the UK legislative body is braced for voting on an updated Brexit deal. In case, it’s rejected, British lawmakers might vote on Thursday to postpone the UK’s departure from the European bloc ahead of the March 29 deadline.
Earlier it was reported that the EEuropean Union could insist on a multi-billion pound hike in divorcee payment in case the UK parliament postpones the deadline.
Besides this, the USD index managed to rally by about 0.1% hitting 97.370. Last Friday, the evergreen buck was pressured after American jobs report as well as Chinese trade data both missed hopes, driving fears of a deceleration in global economic activity.
Financial markets are expected to get the latest outcome of American retail sales later today. Moreover, data on American consumer as well as producer prices are scheduled to be uncovered on respectively Tuesday and Wednesday.
Furthermore, inflation data will also be monitored after the major US bank decided to be patient and wait for incoming data before lifting interest rates again.
The currency pair USD/JPY was nearly intact, sticking with 111.11. The Bank of Japan is expected to announce its benchmark interest rate and also have a rate statement published on Friday.
In addition to this, the currency pair USD/CNY kept to 6.7225. Many financial analysts are assured that the Chinese Yuan will be most probably limited in the nearer future because China’s top statesmen came up with a minor push-back against trade demands made by America.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
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!