It's a busy day ahead, with trade chatter supporting risk appetite ahead of the stats. UK politics will also be in focus later today...
It was a relatively quiet day on the economic calendar through the Asian session this morning, with the Japan markets closed.
Economic data was limited to September retail sales figures out of Australia.
Outside of the numbers, the markets responded further to U.S nonfarm payrolls from Friday and optimism over trade.
News of the U.S and China intending to sign phase 1 of an agreement was positive. There was also news that the U.S would be issuing licenses for U.S companies to sell tech to Huawei Technologies.
Retail sales rose by just 0.2%, month-on-month, in September, following on from a 0.4% rise in August. Economists had forecasted a 0.5% increase.
According to the ABS,
The Aussie Dollar moved from $0.69191 to $0.69064 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.03% to $0.6906, with the disappointing retail sales figures reversing earlier gains. Household consumption remains key for the RBA, which delivers its interest rate decision tomorrow.
At the time of writing, the Japanese Yen was down by 0.03% to ¥108.22 against the U.S Dollar, while the Kiwi Dollar was up by 0.16% to $0.6437.
It’s a relatively busy day ahead on the economic calendar. Economic data due out of the Eurozone includes October prelim manufacturing PMI numbers from Spain and Italy. Later in the morning, finalized manufacturing PMIs are due out of France, Germany, and the Eurozone.
Barring deviation from prelim numbers, Italy and the Eurozone’s PMis will likely have the greatest influence on the day.
On the geopolitical risk front, news from the UK on the latest general election polls and any chatter on trade will also influence.
At the time of writing, the EUR was down by 0.05% to $1.1160.
It’s a relatively quiet day ahead on the data front. October’s construction PMI is due out later this morning.
We can expect Pound sensitivity to today’s figures, though the news wires could have a greater impact on the day.
With the U.S President facing the possibility of impeachment, Boris Johnson has also reportedly found himself in hot water.
News hit the wires over the weekend of the British police presenting a criminal case against Vote Leave to the crown prosecution. The campaign group reportedly overspent during the EU Referendum, with Boris Johnson, Dominic Cummings, and Michael Gove allegedly being aware of the offense.
While Dominic Cummings reportedly stated that both Johnson and Gove were unaware of the overspending at the time, the two were aware at a later date and failed to report the offense. The reaction in Parliament to the reports and how the Crown Prosecution plans to proceed will have an impact on the Pound.
At the time of writing, the Pound was down by 0.09% to $1.2934.
It’s a relatively quiet day ahead on the economic calendar. Key stats are limited to September factor order figures.
While we can expect the numbers to have an influence, chatter on trade and updates from the UK will also provide direction.
The Dollar Spot Index was up by 0.01% to 97.247 at the time of writing.
It’s a quiet day on the economic calendar. There are no material stats due out of Canada later today.
A lack of stats leaves the Loonie in the hands of market sentiment towards trade and influence on crude oil prices.
The Loonie was down by 0.02% to C$1.3145, 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.