Brexit, U.S Stimulus Talks, and Economic Data Put the Pound and the Dollar in Focus

Earlier in the Day:

It’s was a relatively quiet start to the day on the economic calendar this morning. The Kiwi Dollar was in action early on.

Away from the economic calendar, updates on Brexit and U.S stimulus talks were also in focus as the markets responded to disappointing economic data from the U.S.

For the Kiwi Dollar

In September, the Business PMI rose from 50.70 to 54.0. In August, the PMI had fallen from 58.8 to 50.7.

The Kiwi Dollar moved from $0.66015 to $0.65993 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.02% to $0.6599.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.08% ¥105.37 against the U.S Dollar, while the Aussie Dollar was down by 0.08% to $0.7088.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Key stats include finalized September inflation figures for Italy and the Eurozone and August trade figures for the Eurozone.

Barring a marked downward revision to Eurozone inflation figures, however, the stats should have a muted impact on the EUR.

Away from the economic calendar, COVID-19 news and Brexit will remain key drivers on the day.

At the time of writing, the EUR was down by 0.02% to $1.1706.

For the Pound

It’s a quiet day ahead on the economic calendar. There are no material stats due out to provide the Pound with direction.

A lack of stats will leave the markets to react further to the EU Summit. Covid-19 containment measures, announced in the week, will also test Pound support on the day.

Following a disappointing outcome to the EU Summit, where no progress was made, Boris Johnson is due to make a statement today. The deadline has now passed and no framework for an agreement is in place. Will the British PM pull the plug?

At the time of writing, the Pound was down by 0.05% to $1.2902.

Across the Pond

It’s another busy day ahead for the U.S Dollar.

Key stats include September retail sales and industrial production figures along with October consumer sentiment figures.

Expect the retail sales and consumer sentiment figures to be the key drivers on the day.

Away from the economic calendar, U.S politics, and updates from Capitol Hill will also influence on the day.

The Dollar Spot Index rose by 0.51% to 93.856 on Thursday.

For the Loonie

It’s a relatively quiet day ahead. Key stats due out of Canada include August manufacturing sales and foreign securities purchases.

Barring particularly dire numbers, however, we would expect the stats to have limited influence on the Loonie.

Expect updates on new COVID-19 cases and market risk sentiment to be the key drivers on the day.

At the time of writing, the Loonie was down by 0.03% to C$1.3225 against the U.S Dollar.

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