A big week for the United States is approaching as Joe Biden's presidential inauguration will take place on Wednesday. Security forces will be on alert in order not to allow similar chaos as we have seen on the Capitol Hill on January 6, 2021. However, there are also other events scheduled in the days to come that investors should certainly pay attention to. Let's take a look at 3 markets to watch this week.
European Central Bank will announce the next monetary policy decision this Thursday at 12:45 pm GMT. While central bankers from Europe hinted that they are ready to provide more support in case the economy requires it, it looks likely that they will stay on hold this time. However, Lagarde's press conference at 1:30 pm GMT may offer some hints on the future. Apart from that, EURUSD traders should keep on guard on Wednesday as the pair may become more volatile if something goes wrong during Biden's inauguration.
Coronavirus deaths are reaching record highs across Europe and numerous countries decided to extend coronavirus restrictions. Media speculate that in countries like Germany, restrictions may be tightened further. A set of flash January's PMIs from Europe on Friday will offer hints whether ongoing lockdowns are having a major impact on the economy. German reading at 8:30 am GMT will be the key release and it is expected to show a deterioration in both manufacturing and services.
Big banks launched the Wall Street earnings season for Q4 2020 this week that will also include releases on full-year results for 2020. Among key releases this week investors can find Netflix (Tuesday), Goldman Sachs (Tuesday), Intel (Thursday) or IBM (Thursday). Flash PMIs for January set for release on Friday, 2:45 pm GMT may also have an impact on the markets should they show a major deviation from expectations. However, both services and manufacturing indices are expected to remain close to last month's levels.
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