A Busy Economic Calendar Puts the EUR and the Loonie in Focus

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen and the Aussie Dollar were in action early this morning, with trade data from China due out later this morning.

On the monetary policy front, the RBA will also deliver its final monetary policy decision of the year amidst the rising number of Omicron cases worldwide.

For the Japanese Yen

Household spending rose by 3.40% in October, following a 5.0% jump in September. Economists had forecast a 3.60% rise. Year-on-year, household spending was down by 0.60%, however, after having fallen by 1.9% in September. Economists had forecast a 0.60% decline.

According to the Statistic Bureau,

• Spending on education was up 17.1%, year-on-year, with spending on transportation & communication rising by 10.9%.
• Household spending on furniture & household utensils slid by 16.7%, however, with spending on housing down 12.3%.
• There were also sizeable declines in spending on clothing & footwear (-9.1%) fuel, light, & water charges (-7.3%).
• Spending on culture & recreation (-5.4%), medical care (-5.4%), and food (-0.9%) saw relatively modest declines when compared with Oct-2020.

The Japanese Yen moved from ¥113.449 to ¥113.491 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.01% to ¥113.490 against the U.S Dollar.

For the Aussie Dollar

In the 3^rd quarter, house prices increased by 5.0% versus a forecasted 5.0% increase for the quarter. The House Price Index had risen by 6.7% in the previous quarter.

The numbers had a muted impact on the Aussie Dollar, however, with the markets looking ahead to the RBA monetary policy decision and rate statement.

In response to the numbers, the Aussie Dollar moved from $0.70420 to $0.70447. At the time of writing, the Aussie Dollar was down by 0.09% to $0.7044.

Elsewhere

At the time of writing, the Kiwi Dollar was down by 0.12% to $0.6745.

The Day Ahead

For the EUR

It’s a busy day ahead on the economic calendar. German industrial production and German and Eurozone ZEW Economic Sentiment figures are due out later this morning.

Expect Germany’s industrial production to be key alongside the ZEW numbers. For the Eurozone, 3^rd estimate GDP numbers for the 3^rd quarter are also due out. Barring revisions from 2^nd estimates, however, the numbers should have a muted impact on the EUR.

At the time of writing, the EUR was down by 0.04% to $1.12981

For the Pound

It’s a quiet day ahead on the economic calendar. House price figures are due out that should have a muted impact on the Pound.

COVID-19 news updates and any central bank chatter will influence, however.

At the time of writing, the Pound was down by 0.05% to $1.3258.

Across the Pond

It’s a relatively busy day ahead. Unit labor costs and nonfarm productivity numbers are due out along with trade data.

With market focus on inflation, FED monetary policy, and COVID-19, however, the numbers should have a muted impact on the Greenback.

Expect COVID-19 news updates to continue to draw plenty of attention.

At the time of writing, the Dollar Spot Index was down by 0.03% to 96.302.

For the Loonie

It’s a relatively busy day ahead. Trade data for October and Ivey PMI numbers for November will be in focus later today.

While the Ivey PMI numbers will draw plenty of interest, expect the trade data to have a greater influence.

Away from the economic calendar, however, market sentiment towards the Omicron strain and the economic outlook will remain key.

At the time of writing, the Loonie was down by 0.05% to C$1.2762 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.