Consumer Confidence Puts the EUR and USD in Focus as Trade Talks Continue

Earlier in the Day:

It’s a busier day on the economic calendar through the Asian session this morning.

3^rd quarter retail sales figures provided the Kiwi Dollar with direction in the early part of the day.

With no other stats for the markets to focus on, further updates on trade from Beijing and Washington also provided direction.

Optimism over trade provided support to riskier assets in the early part of the day.

For the Kiwi Dollar

Retail sales rose by 1.6% in the 3^rd quarter, quarter-on-quarter, following on from a 0.2% rise in the 2^nd quarter.

According to NZ Stats,

• A jump in retail sales was attributed to a sharp increase in spending on electronics, including appliances, mobile phones, and computers, which rose by 4.4%.
• In total, 11 of the 15 industries had higher sales volumes in the 3^rd
• Department store sales had the 2^nd largest increase, with sales rising by 3.5%.
• Accommodation had the largest decline, however, falling by 1.4%.

The Kiwi Dollar moved from $0.64065 to $0.64178 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.02% to $0.6417.

For the Majors

At the time of writing, the Japanese Yen was down by 0.05% to ¥108.98 against the U.S Dollar, with the Aussie Dollar down by 0.03% to $0.6777.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Key stats are limited to Germany’s GfK Consumer Climate figures for December.

With so much reliance on consumer spending, amidst the ongoing contraction in the manufacturing sector, consumer confidence will need to hold steady.

Outside of the numbers, expect geopolitical risk to continue to influence, with trade the main area of focus as the talks of a near-term agreement build.

At the time of writing, the EUR was down by 0.03% to $1.1011.

For the Pound

It’s another quiet day on the data front. There are no material stats due out of the UK to provide direction to the Pound.

That leaves UK Politics to provide direction throughout the day. While there are no debates to influence, expect opinion polls and predictions to remain in focus.

So far so good for the Tories and the Pound.

At the time of writing, the Pound was down by 0.02% to $1.2897.

Across the Pond

It’s a busy day on the economic calendar. Key stats due out of the U.S include goods trade figures, new home sales, and consumer confidence figures.

We can expect new home sales and consumer confidence figures to have the greatest impact.

House price figures for September will likely have less influence on the day.

Early in the day, FED Chair Powell was also scheduled to speak, though there’s unlikely to be any surprises. On Monday, Powell had continued to suggest that no further rate cuts were likely near-term.

The Dollar Spot Index was flat at 98.319.

For the Loonie

It’s a quiet day on the economic calendar. There are no material stats scheduled for release throughout the day.

Any upside for the Loonie may be limited, however, ahead of this week’s crude oil inventory numbers.

The Loonie was down by 0.08% to C$1.3310, against the U.S Dollar, at the time of writing.