The ECB and economic data put the euro and the dollar in the spotlight


Early in the day:

The start of the Asian session was busier. The Japanese yen and Australian dollar were in action in the early hours of the day. Entering the Asian open, markets also responded to the FOMC meeting minutes overnight.

For the Japanese yen

In January, Japan’s trade deficit widened from 583.3 billion yen to 2,191.1 billion yen. According to figures published by the Ministry of Finance,

  • Exports increased by 9.6% year-on-year.
    • Exports to China fell 5.4%, while exports to the United States rose 11.5%.
  • However, imports jumped 39.6%, leading to a widening trade deficit.
    • Imports from China rose 23.7%, with imports from the United States up 33.4% year-on-year.

The Japanese yen rose from ¥115.371 to ¥115.339 in response to trade data. At the time of writing, the Japanese yen was up 0.03% at ¥115.490 against the US dollar.

For the Australian dollar

The January employment figures generated a lot of interest this morning. In January, employment increased by 12.9k, leaving the unemployment rate unchanged at 4.2%. Economists had forecast a drop of 15,000 jobs and a maintenance of the unemployment rate.

According to abs,

  • Full employment fell by 17,000, partially reversing an increase of 41,500 from December.
  • Compared to March 2020, the number of unemployed was 143,200 lower.
  • The activity rate rose by 1 point to 66.2%.

The Australian dollar rose from $0.72069 to $0.72061 when the figures were released. At the time of writing, the Australian dollar was up 0.03% at $0.7197.

Somewhere else

At the time of writing, the Kiwi Dollar was up 0.13% at $0.6688.

The day to come

For their

It is a particularly calm day which is announced on the economic calendar. There are no hard statistics expected from the Eurozone to give direction to the Euro.

Although there are no statistics to consider, the ECB’s Economic Bulletin and the discussions of ECB members will generate interest. Lane, member of the ECB, must speak at the end of the day.

At the time of writing, the Euro was up 0.03% at $1.1376.

For the pound

It is also a particularly quiet day on the economic calendar. There are no hard data expected from the UK to provide direction for the pound. The lack of data will leave market sentiment towards the BoE’s monetary policy to provide support for the pound.

At the time of this writing, the pound was down 0.02% at $1.3583.

On the other side of the pond

Unemployment claims and Philly FED Manufacturing numbers will be the focus. Barring disastrous manufacturing numbers, expect UI claims numbers to be key.

Other statistics for the day include data from the housing sector which should have a moderate impact on the dollar.

At the time of writing, the US Dollar Spot Index was up 0.10% at 95.793.

For the loon

There are no major stats expected from Canada to give direction to the Loonie. The lack of statistics will leave the Loonie in the hands of market risk sentiment and crude oil prices that day.

At the time of writing, the Loonie was down 0.09% at C$1.2699 against the US Dollar.

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

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