Economic data puts Euro, Pound and US Dollar in focus


Early in the day:

It’s a busier start to the Asian session. In the early morning, 4and Japan’s quarterly GDP figures sparked interest. Later in the morning, the minutes of the RBA meeting and final Japanese industrial production figures are also due to be released. Expect the RBA meeting minutes to be critical as markets scan for any hint of a change in sentiment on spot rates.

For the Japanese yen

In the 4and quarter, the Japanese economy grew 1.3% quarter on quarter, down from the 1st estimate 1.4%. The economy had contracted 0.9% in the previous quarter. Year-on-year, the economy grew 5.4%, compared to 1st estimate 5.8%. In the 3rd quarter, the economy had contracted by 3.6% year-on-year.

The Japanese yen fell from ¥115.538 to ¥115.481 when the figures were released. At the time of writing, the Japanese yen was up 0.03% at ¥115,500 against the US dollar.

Somewhere else

The Australian dollar rose 0.08% to $0.7133, while the Kiwi dollar was flat at $0.6616.

The day to come

For their

2n/a GDP estimates for the Eurozone and ZEW Economic Sentiment figures for Germany and the Eurozone will be key. Other statistics include final inflation figures from Spain and trade data from the Eurozone. Barring dire trade data, we don’t expect the numbers to have a significant impact on the Euro.

At the time of writing, the Euro was up 0.02% at $1.1309.

For the pound

The number of claimants and unemployment figures will be the key statistics for the day. However, employment developments and average incomes will also be in focus as markets seek to guess the Bank of England’s next move.

At the time of this writing, the pound was up 0.07% at $1.3537.

On the other side of the pond

Wholesale inflation and NY Empire State Manufacturing numbers will catch the eye. With markets focused on inflation, expect wholesale inflation numbers to be key. A resumption of wholesale inflationary pressure would put further upward pressure on consumer prices and then on the Fed.

On Monday, the US Dollar Spot Index rose 0.22% to end the day at 96.298.

For the loon

Housing sector figures are due out later today. However, don’t expect the numbers to provide direction for the Loonie. Geopolitics and market risk sentiment will likely be key today.

At the time of writing, the Loonie was up 0.03% at C$1.2726 against the US dollar.

For an overview of all of today’s economic events, check out our economic calendar.

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