Economic data out of China provides early support, as the markets look ahead Eurozone and U.S data later in the day. Geopolitics will also be in focus...
It was a busy start to the week on the economic calendar through the Asian session this morning.
The Japanese Yen and Aussie Dollar were in action in the early part of the day.
Australian manufacturing, building approvals and company gross operating profit figures along with manufacturing PMI numbers out of China provided direction early in the day.
Of less influence was 3rd quarter capital spending figures out of Japan.
On the geopolitical front, the markets continued to wait out for China’s reaction to Trump’s signing of the HK Bill.
Capital spending surged by 7.1% in the 3rd quarter, year-on-year, following a 1.9% increase in the 2nd quarter. In the 1st quarter, spending had risen by 6.1%.
The Japanese Yen moved from ¥109.562 to ¥109.527 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.19% to ¥109.7 against the U.S Dollar.
The AIG Manufacturing Index fell from 51.6 to 48.1 in November. Following on from a slide from 54.7 back in October, the index fell to its lowest level since August 2016.
According to the latest AIG Report,
Building Approvals slid by 8.1% in October, partially reversing a 7.6% jump in September. Economists had forecast a 0.4% increase.
According to the ABS,
Company gross operating profits fell by 0.8% in the 3rd quarter, following a 4.5% rise in the 2nd quarter. Economists had forecast a 1.5% increase.
According to the ABS,
The Aussie Dollar moved from $0.67674 to $0.6750 upon release of the figures. At the time of writing, the Aussie Dollar up by 0.15% to $0.6773.
The Caixin Manufacturing PMI rose from 51.7 to 51.8 in November. Economists had forecast a fall to 51.4. According to the Markit Survey,
The Aussie Dollar moved from $0.67717 to $0.67745 upon release of the figures.
At the time of writing, the Kiwi Dollar was up by 0.31% to $0.6442.
It’s a busy day ahead on the economic calendar. Key stats include November manufacturing PMI numbers out of Italy and Spain and finalized PMIs out of France, Germany, and the Eurozone.
Barring deviation from prelim figures, Italy and the Eurozone’s figures will have the greatest influence on the EUR.
Expect the devil to be in the details, with employment conditions and new orders likely to be the main areas of focus.
On the geopolitical front, any updates from Beijing and Washington on trade will also influence.
At the time of writing, the EUR was flat at $1.1018.
It’s a relatively busy day on the data front. Finalized November manufacturing PMI numbers are due out later this morning.
Barring a material revision, however, the Pound will likely brush aside today’s numbers, with the focus being on the UK General Election.
There are just 10 days until Election Day and Boris Johnson’s lead has narrowed sharply from 17 points to just 9 according to the latest YouGov opinion poll tracker.
Sunday’s ITV Election Debate will likely have some influence in the early part of the day.
At the time of writing, the Pound was down by 0.09% to $1.2914.
It’s a relatively busy day on the economic calendar, with manufacturing PMI figures due out for November.
Barring deviation from the Markit’s prelim numbers, the focus will be on the market’s preferred ISM Manufacturing PMI.
Outside of the numbers, the markets will be looking for any retaliation from China on Trump’s signing of the HK Bills last week. Or there could be further progress towards a phase 1 agreement…
At the time of writing, the Dollar Spot Index was up 0.04% at 98.312.
It’s a quiet start to the week on the economic calendar, with no material stats due out of Canada to provide direction.
With the Bank of Canada in action on Wednesday, PMI numbers from China, the Eurozone, and the U.S could influence crude oil prices and the Loonie throughout the day.
Last week’s GDP figures suggest that the BoC may need to take a more cautious stance, which should limit any major upside in the early part of the week.
The Loonie was up by 0.01% to C$1.3281, against the U.S Dollar, at the time of writing.
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.