The British monthly GDP is announced on Friday at 09:00 MT time.
Will the US GDP push the dollar?
The final American quarterly GDP is announced on Tuesday at 15:30 MT time.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
A chart like the one you see below has never appeared on the desks of the American economists. After an unseen plunge of more than 30% in the second quarter this year, the American economy has expanded by more than 30% in the next one - a charming picture for the eyes of a perfectionist. But don’t take that as a precise figure just yet: the 33.1% is still an estimate that is to be confirmed on December 22. While the probability of seeing a different figure on the due date is relatively low, we have to remember that calculating GDP performance is not an easy task, and the reliability of the figures requires time and precision. Therefore, if the figure is revised to the downside, it will be bad news for the USD. Otherwise, it may rise.
- If the GDP is revised to the downside, the USD will drop.
- Otherwise, it will rise.
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.