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A Busy Economic Calendar Puts the EUR, the Loonie, the Pound, and the U.S Dollar in Focus

By:
Bob Mason
Published: May 21, 2021, 01:50 UTC

It's a busy day ahead on the economic calendar, with private sector PMIs for May in focus. For the Pound, retail sales figures will also influence.

collection of various currencies from countries around the world

In this article:

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen and Aussie Dollar were in action this morning.

For the Japanese Yen

Inflation and prelim private sector PMIs were in focus in the early hours.

In April, deflationary pressures persisted, with consumer prices falling by 0.1% when compared with April 2020. Economists had forecast a 0.2% decline.

The Japanese Yen moved from ¥108.816 to ¥108.841 upon release of the figures that preceded the prelim PMI numbers.

According to prelim figures, Japan’s manufacturing PMI slipped from 53.6 to 52.5 in May, with the services PMI falling from 49.5 to 45.7. Economists had forecast PMIs of 53.3 and 48.0 respectively.

According to the May prelim Markit Survey,

  • Output fell at the quickest pace in 4-months, with new business contracting at the fastest pace since February.
  • Firms attributed to the renewed decline in business conditions to the recent increase in new COVID-19 cases.
  • In spite of the fall in new orders, firms continued to increase payrolls, albeit at a slower pace.
  • Firms remained optimistic, though were less optimistic than back in April.

The Japanese Yen moved from ¥108.839 to ¥108.840 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.03% to ¥108.81 against the U.S Dollar.

For the Aussie Dollar

Prelim retail sales figures were in focus this morning.

In April, retail sales rose by 1.1% according to prelim figures. Sales had risen by 1.3% in March.

According to the ABS,

  • Food retailing (+1.5%) led the way, with cafes, restaurants, and takeaway food services (+2.5%) also seeing solid sales.
  • Compared with April 2020, retail sales were up 25.1% in April 2021.

The Aussie Dollar moved from $0.77654 to $0.77620 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.14% to $0.77606.

Elsewhere

At the time of writing, the Kiwi Dollar was down by 0.21% to $0.7185.

The Day Ahead

For the EUR

It’s a busy day ahead on the economic data front. Prelim French, German, and Eurozone private sector PMI figures for May are due out later today.

Following impressive manufacturing PMI figures of late, the markets will be looking for the momentum to continue.

Key, however, will also be a continued recovery across the services sector.

While the headline figures will be the main area of focus, expect the sub-components to also influence. New orders, employment, and optimism will be other areas of interest. Near-term, the markets are expecting price pressures to linger.

On the monetary policy front, ECB President Lagarde is also scheduled to speak. Expect any chatter on the economic outlook or monetary policy to also provide the EUR with direction.

At the time of writing, the EUR was up by 0.05% to $1.2234.

For the Pound

It’s a particularly busy day ahead on the economic calendar. Retail sales figures for April and prelim private sector PMI numbers for May are due out.

Expect the retail sales and services PMI figures to have the greatest impact on the Pound.

At the time of writing, the Pound was down by 0.06% to $1.4181.

Across the Pond

It’s a relatively busy day ahead on the economic calendar. Prelim private sector PMI numbers for May and existing home sales figures for April are due out.

Expect the prelim services PMI to have the greatest impact on market risk sentiment and the Dollar.

At the time of writing, the Dollar Spot Index was down by 0.07% to 89.742.

For the Loonie

It’s a relatively busy day ahead on the economic calendar. Retail sales figures for March are due out that will provide the Loonie with direction.

Impressive numbers will bring sub-C$1.20 levels into view.

At the time of writing, the Loonie was down by 0.09% to C$1.2072 against the U.S Dollar.

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

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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