A light Economic Calendar Leaves Brexit and the ECB in Focus

The Aussie Dollar takes another hit this morning. With stats on the lighter side on the day ahead, the focus will remain on Brexit and monetary policy.
Bob Mason
Forex Yearly

Earlier in the Day:

The economic calendar was on the lighter side through the Asian session this morning. Key stats included 3rd quarter BSI Large Manufacturing Conditions figures and September consumer sentiment numbers out of Australia.

For the Japanese Yen

The BSI Large Manufacturing Conditions Index increased from -10.4 to -0.2 in the 3rd quarter.

The Japanese Yen moved from ¥107.562 to ¥107.564 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.05% to ¥107.59 against the U.S Dollar.

For the Aussie Dollar

The Westpac Consumer Sentiment Index fell by 1.7% to 98.2 in September, partially reversing a 3.6% rise in August. According to the Westpac report,

  • The pullback was attributed to concerns over the near-term economic outlook and pressure on family finances. Two consecutive RBA rate cuts in the summer and tax refunds failed to provide support.
  • Looking at the numbers:
    • The sub-index for family finances vs a year ago fell by 2.5%, with finances for next 12-months down by 2.2%.
    • Economic conditions next 12-months slid by 3.1%, while economic conditions next 5-years was up by 2.1%. The next 12-months sub-index was down 7.6% year-on-year, while next 5-years was up by 2.7%.
    • The time to buy a major household item sub-index fell by 2.8%.
    • On the labor market front, the Unemployment Expectations Index rose by 0.2% and was up by 10.6% year-on-year.
    • The Time to buy a dwelling index fell by 2.9%, whilst rising by 19.1% over the year, supported by a 3.9% rise in the House Price Expectations Index.

The Aussie Dollar moved from $0.68628 to $0.68530 upon release of the figures. At the time of writing, the Aussie Dollar was down 0.15% to $0.6851.

The deterioration in consumer sentiment will be of concern to the RBA, who continues to raise uncertainties over household spending.

Elsewhere

At the time of writing, the Kiwi Dollar was down by 0.22% to $0.6412.

The Day Ahead:

For the EUR

It’s a quiet day ahead on the economic calendar, with no material stats due out of the Eurozone today. A lack of stats will leave the markets to consider how far the ECB and FED will go to appease the markets’ demands for support.

On the geopolitical front,  Brexit chatter will continue to be in focus, with time running out for British Prime Minister Johnson.

At the time of writing, the EUR was up by 0.05% to $1.1048.

For the Pound

It’s also a quiet day ahead on the data front. There are no material stats to provide the Pound with direction through the day.

With the BoE monetary policy decision next week, the markets will have an opportunity to consider the stats from the start of the week. Brexit uncertainty continues to pressure the Pound and the UK economy, however, which questions what lies ahead. With a stalling economy and a possible further extension to Brexit, can the BoE continue to stand pat?

On the geopolitical front, Brexit chatter will ultimately be the key driver on the day.

At the time of writing, the Pound was down by 0.02% to $1.2348.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar, with data limited to August wholesale inflation figures.

Any pickup in inflationary pressures will likely have a relatively muted impact on the Greenback. A modest pickup in inflationary pressure is unlikely to change the FED’s course on monetary policy.

At the time of writing, the Dollar Spot Index was up by 0.04% to 98.366.

For the Loonie

It’s a quiet day ahead on the economic calendar, with no material stats due out of Canada.

The lack of stats will leave the Loonie in the hands OPEC and crude oil prices later this afternoon. While hopes of the U.S and China making progress in trade talks are positive, OPEC’s production intentions and outlook on demand will influence on the day.

The Loonie was up by 0.05% at C$1.3146, against the U.S Dollar, at the time of writing.

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