The British monthly GDP is announced on Friday at 09:00 MT time.
USD: are American consumers confident enough?
CB Consumer Confidence index will be announced at 17:00 MT time on Tuesday.
Instruments to trade: EUR/USD, USD/GBP, AUD/USD, USD/JPY
These days don’t seem too eventful in terms of planned economic meetings or announcements on the global scale. That’s good: it gives us time to look at many other indicators, apart from the usual labor statistics, inflation, and interest rates. One of these is consumer confidence. Although it does not move the currency prices as intensely as the primary indicators do, it may still have its effect if it significantly deviates from expected levels. CB Consumer Confidence index is a summary of a questionnaire done with 5000 households. They inform on the economic outlook, current conditions, spending, and business environment. If the indicator overshoots the forecast, it supports the national currency. Hence, we are yet to see how confident the US consumers are about their country’s economy.
- If CB Consumer Confidence index outperforms the forecasts, the USD will gain;
- If CB Consumer Confidence index underperforms, the USD will drop.
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.