The economic news of the coming week will determine the trends of the major currencies against the dollar. Thus, the dollar may stop the current strengthening due to the weakening of the PMI indices in the US, which in European countries can show growth.
The delay in accepting the aid package from Joe Biden will further exacerbate the fall of the American currency. Investors were looking forward to swift approval of a $ 1.9 trillion allocation from the new president, whose party controls both houses of the US Congress. Janet Yellen, who took over as finance minister, could also weaken the dollar if she expands the government bond program.
This scenario can be reversed by clearing up the thesis of an increase in the negative rate of the ECB, thrown last week by the head of the Central Bank of the Netherlands, as well as increasing problems with the supply of vaccines in the Eurozone. The expanded vaccination campaign has not yet led to a decrease in the incidence of Covid-19. European countries are closing borders, extending lockdowns.
The pound may rise in the coming week, if during the meeting of the Bank of England, the head of the Regulator confirms the distant prospect of zero rates.