Economic Data and Central Bank Chatter Put the EUR, the Pound, and the Dollar in Focus

Earlier in the Day:

It was a quieter start to the day on the economic calendar. this morning. The Aussie Dollar was in action this morning.

For the Aussie Dollar

Private new capital expenditure figures were in focus this morning.

In the 1^st quarter, private new CAPEX jumped by 6.3%, following a 3.0% rise in the 4^th quarter of 2020. Economists had forecast a more modest 2% increase.

According to the ABS,

• Buildings and structures rose by 3.8%, with equipment, plant, and machinery surging by 9.1%.

The Aussie Dollar moved from $0.77272 to $0.77311 upon release of the figures. At the time of writing, the was Aussie Dollar down by 0.14% to $0.7732.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.01% to ¥109.14 against the U.S Dollar, while the Kiwi Dollar was down by 0.05% to $0.7278.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic data front. Germany’s GfK Consumer Climate figures for June are due out later this morning.

With little else for the markets to consider, expect plenty of influence. The markets will be looking for a pickup in consumer confidence supported by the reopening of economies across the region.

On the monetary policy front, ECB members are also due to speak later in the day. Expect any chatter on policy or the economic outlook to also influence.

At the time of writing, the EUR was down by 0.07% to $1.2184.

For the Pound

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

The lack of stats will continue to leave market sentiment towards the economic outlook to provide direction. Following a string of impressive stats, downside for the Pound should, therefore, be limited.

On the monetary policy front, BoE member Vlieghe could influence later in the day…

At the time of writing, the Pound was down by 0.14% to $1.4099.

Across the Pond

It’s a busy day ahead on the calendar. 2^nd estimate GDP, core durable goods, and week jobless claims figures are due out of the U.S.

Barring any marked revisions to the GDP numbers, expect the jobless claims to have the greatest influence.

A continued downward trend in the weekly initial jobless claims is going to be needed to support the market optimism. A marked decline would, however, add more fuel to market concerns over a possible shift in FED monetary policy.

On the monetary policy front, FOMC member chatter will also need monitoring.

At the time of writing, the Dollar Spot Index was up by 0.11% to 90.143.

For the Loonie

It’s another quiet day ahead on the economic data front. There are no material stats due out of Canada.

The lack of stats will leave the Loonie in the hands of market risk sentiment.

At the time of writing, the Loonie was down by 0.08% to C$1.2133 against the U.S Dollar.

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