Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
Will the US CPI boost the USD?
The American CPI is announced on Wednesday at 15:30 MT time.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
Consumer prices are the indicator and the main component of country inflation. Inflation, above all, is the indicator of economic activity. More consumer demand – higher prices, lower consumer demand – lower prices. Consumer demand, in turn, is the basis of domestic economic health and prosperity. Therefore, if the US CPI is higher than the forecasts, that would mean that the US economy is recovering faster than projected. Such a scenario would boost the USD.
- If the CPI is better than though, the USD will rise.
- Otherwise, it will drop.
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Strong USD on Tuesday
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.
Will the USD grow with the US labor market?
The US unemployment claims are out on Thursday at 15:30 MT time.
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The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Markets await Biden to unveil "trillions dollars"
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.
USD came under selling pressure
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
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