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.
USD awaits the last important indicator of this year
The USA will publish Chicago PMI on December 30, at 16:45 MT time.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
Chicago is a big business center in the USA, therefore the data from there tend to reflect the country's overall economic trend. Just like a regular PMI, this one represents a survey of around 200 purchasing managers, which asks them to rate the level of business conditions. If the indicator is above 50, the situation is improving. On the other hand, the indicator below 50 signals worsening business conditions. As there are not so many events in the economic calendar these days, the release may result in volatility of the US dollar.
- If the indicator is higher than the forecasts, the USD will go up.
- If the indicator is lower than the forecasts, the USD will slump.
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.