Week in a Glance: stimulus, ECB, UK Failures and OECD Forecast

The Biden stimulus package adoption by Congress and the bill signing by Biden were the main events of the past week. Some Americans received $1,400 in one-time cash assistance already this weekend, as a result. So, many analysts have revised their own forecasts for the US economy growth rate in favor of growth. The OECD, for example, more than doubled its US-related forecast up to 6.5%. We’ll remind you that China has planned a 6% economic growth mark for 2021. It means the US may overtake China in terms of GDP growth—for the first time in many decades.

For the world as a whole, the organization raised its forecast for global growth for 2021 from 4.2% to 5.6%.

Against this background, the US stock indices renewed their all-time highs. New local maximums were also renewed by the yield of US Treasury bonds. It cannot but worry buyers on the US stock market. Also, the dollar is becoming more attractive—so, the time has come to look closely at the mid-term purchases.

Yes, we’d buy the dollar against the British pound. UK GDP data was released last week, showing that the country’s economy contracted 2.9% in January (the worst economic slowdown since the first lockdown almost a year ago). In addition, in January, the UK exports to the EU fell by 40.7% and imports—by 28.8%.

Among other events of the week, there are the ECB meeting results. The monetary policy parameters were left unchanged, but since the volumes of the asset repurchase program haven’t been fully implemented in recent months, the European Central Bank states to plan an increase in its purchases in the future due to the saved volumes.

This week will be interesting primarily because of the Fed meeting results and the ones of the Bank of England and the Bank of Japan. In addition, we’re waiting for the data on retail sales in the US and consumer inflation in the Eurozone.