Economic Data and Brexit Put the Greenback and the Pound in Focus

Bob Mason
Updated: Aug 20, 2020, 01:55 GMT+00:00

Economic data from the U.S and updates from Brexit negotiations will be the main areas of focus today.


Earlier in the Day:

It’s was a quiet start to the day on the economic calendar this morning.  There were no material stats to consider in the early part of the day.

On the monetary policy front, the PBoC was in action this morning, however.

With no stats to consider, the markets also responded to the FOMC meeting minutes from overnight.

Out of China

The PBoC left the 3-year loan prime rate unchanged at 3.85% and the 5-year LPR unchanged at 4.65%. This was in line with expectations and with recent forward guidance from the PBoC on monetary policy.

At the time of writing, the Aussie Dollar was down by 0.19% to $0.7168.


At the time of writing, the Japanese Yen was down by 0.03% ¥106.15 against the U.S Dollar, with the Kiwi Dollar down by 0.12% to $0.6551.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Key stats include July wholesale inflation figures from Germany. Following a 0.40% decline in June, the markets will be looking for a pickup in the producer price index to support the improved sentiment towards demand.

Later in the day, however, the ECB’s monetary policy meeting minutes will likely be the key driver on the day.

Ahead of the last meeting, there had been news of disagreements on how to support the economic recovery. Expect any details to influence…

At the time of writing, the EUR was down by 0.03% to $1.1835.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. August’s CBI industrial Trend Orders are due out later today.

With the markets having had little to consider in the week, expect the numbers to influence.

Away from the economic calendar, COVID-19 and Brexit news updates will also need monitoring.

At the time of writing, the Pound was down by 0.03% to $1.3094.

Across the Pond

It’s a relatively busy day ahead for the U.S Dollar. Key stats include the weekly jobless claims and August’s Philly FED Manufacturing Index numbers.

Expect plenty of influence on the numbers. While the Philly FED figures will draw interest, the weekly jobless claims will need to avoid a spike.

Away from the economic calendar, updates on the COVID-19 stimulus package and any further moves against China will also influence.

At the time of writing, the Dollar Spot Index was up by 0.19% to 93.067.

For the Loonie

It’s a particularly quiet day on the economic data front, with no material stats to provide the Loonie with direction.

A lack of stats will leave the Loonie in the hands of market risk sentiment on the day.

At the time of writing, the Loonie was down by 0.10% to C$1.3229 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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