UK To Publish Roadmap Out Of Lockdown


President’s Day Doesn’t Halt Dollar Decline

The US index closed 0.10% lower on Monday as it continued its bearish tone.

Analysts still back an extended period of weakness for the greenback into 2021, on the back of the Fed’s commitment to maintain monetary easing and low-interest rates.

In addition, there are also mixed feelings among traders that more stimulus and a faster recovery for the US could drive reflation and increase the appeal for riskier instruments over the dollar.

This comes as Japan, the world’s third-largest economy bounced back, as they posted stronger than expected GDP numbers.

Is this news another bump in the road for America’s recovery?

Euro Mixed on Production Data

The euro ended yesterday’s session indecisively as the currency pair still looks for direction.

Eurozone industrial output fell more than expected in December as manufacturing of capital goods dropped.

The reading was worse than analysts’ average forecast for a 0.6% drop and marked a downturn after 2.6% growth in November.

We now look towards today’s ZEW sentiment for another possible push towards 1.22.

Vaccine Milestone Boosts Sterling

The pound jumped 0.38% higher on Monday as it cleared the 1.39 handle.

Vaccine optimism has pushed Sterling to a 34-month high, as the UK reached its target of vaccinating 15 million vulnerable people by mid-February.

Rollout targets boosted the perception among investors that it will be in a better position to re-open its economy quicker. With Britain expected to announce its roadmap to exit the latest lockdown as early as this week.

Stocks Continue to Impress

US indices continued their climb as all three majors closed at record highs yet again.

Even though the pandemic is far from defeated, the path toward economic normalization is clearer as more vaccines reduce hospitalizations, leading to a light at the end of the tunnel.

We now await further direction from Yellen and Fed speakers, over the timelines for further fiscal injections.

1 2
View single page >> |

Disclaimer: Orbex LIMITED is a fully licensed and Regulated Cyprus Investment Firm (CIF) governed and supervised by the Cyprus Securities and Exchange Commission (CySEC) (License Number 124/10). ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.