A Busy Economic Calendar Puts the EUR, Loonie, and USD in the Spotlight

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen was in action this morning, with economic data from China also in focus.

For the Japanese Yen

In November, Japan’s Services PMI increased from 50.7 to 53.0, which was up from a prelim 52.1.

According to the November survey,

• The November increase was the 2^nd sharpest in 27-months, supported by the lifting of state of emergency measures.
• New business inflows returned to expansion for the first time since Jan-2020, with the rise the fastest since Mar-2020.
• There was also a return to expansion for new export orders, though the rise was modest.
• In spite of additional pressure on capacity, firms reduced employment levels for the first time since July, however.
• Average cost burdens rose at an accelerated pace, with the rate of inflation the sharpest since Aug-2008.
• Confidence picked up in November, reaching a record high.

The Japanese Yen moved from ¥113.030 to ¥113.098 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.04% to ¥113.080 against the U.S Dollar.

From China

In November, the Caixin Services PMI fell from 53.8 to 52.1. Economists had forecast a more modest decline to 52.6.

According to the November survey,

• Total new business rose at the slowest rate for 3-months and only marginally overall, with foreign demand rising modestly.
• Measures to curb the spread of COVID-19 had reportedly weighed on new order inflows.
• Strong business confidence and efforts to expand capacity led to a further increase in employment. The rate of job creation was the quickest since May.
• Average input prices increased for a 17^th consecutive month, with the rate of inflation accelerating to a 6-month high.
• Prices charged, however, rose at a softer pace in November. This was linked to weaker demand.
• Firms remained strongly confident, however, that output will increase over the next year.

The Aussie Dollar moved from $0.70700 to $0.70719 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.31% to $0.7072.

Elsewhere

At the time of writing, the Kiwi Dollar was down by 0.41% to $0.6790.

The Day Ahead

For the EUR

It’s a busy day ahead on the economic calendar. Member state and Eurozone services and composite PMI numbers for November are due out along with retail sales for the Eurozone.

Barring marked revisions from prelims for France and Germany, expect the Eurozone’s composite and retail sales to be key.

At the time of writing, the EUR was down by 0.02% to $1.1299.

For the Pound

It’s a quiet day ahead on the economic calendar. November’s finalized services PMI will be in focus later today. Expect any change from prelim to influence.

Away from the economic calendar, however, COVID-19 news will likely remain the key driver.

At the time of writing, the Pound was down by 0.10% to $1.3292.

Across the Pond

It’s a busy day ahead. November’s nonfarm payrolls and ISM Non-Manufacturing PMI will be the key drivers later today.

The markets will be looking for another marked increase in hiring and a further pickup in service sector activity to support FED Chair Powell’s hawkish chatter.

Other stats include finalized Markit private sector PMIs and factory orders. The numbers are unlikely to have a material impact on the Dollar or the broader markets, however.

At the time of writing, the Dollar Spot Index was flat at 96.160.

For the Loonie

It’s a relatively busy day ahead. Unemployment figures for November will be in focus.

With little else for the markets to consider, expect Loonie sensitivity to the numbers.

At the time of writing, the Loonie was down by 0.16% to C$1.2830 against the U.S Dollar.

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