Economic Data from Germany Puts the EUR in Focus

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen and the Kiwi Dollar were in action in the early hours.

For the Kiwi Dollar

Trade data was in the spotlight this morning.

In June, New Zealand’s trade surplus narrowed from NZ$498m to NZ$261m. Economists had forecast a widening to NZ$500m.

According to NZ Stats,

• In June, the value of all goods exported increased NZ$871m (17%) from June 2020 to NZ$6.0bn.
  • Exports of logs and wood reached a new high, up NZ$105m (23%).
  • Beef exports together with the exports of milk powder, butter, and cheese also contributed to the rise in exports.
  • China received the largest share of exports, accounting for 32% of total exports in June.
• Imports increased NZ$1.1bn (24%) to NZ$5.70bn in June compared with June 2020.
  • A 166% surge in the imports of vehicles, parts, and accessories drove imports northwards.

The Kiwi Dollar moved from $0.69785 to $0.69794 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.04% to $0.69710.

For the Japanese Yen

Private sector PMIs for July were in focus this morning.

The Manufacturing PMI fell from 52.4 to 52.2, with the services PMI declining from 47.2 to 46.4. Economists had forecast PMIs of 51.9 and 47.0 respectively.

According to the July survey,

• The composite fell from 48.9 to 47.7, with output falling at the quickest pace in 6-months.
• Firms attributed the decline to a continued rise in new COVID-19 cases and state of emergency measures.
• New orders declined at a strong pace, driven by a stronger decline across the services sector.
• Employment levels continued to rise across the private, albeit at a slower pace, while the services sector saw employment levels fall.
• Firms reported a more marked pickup in output prices, driven by the manufacturing sector.
• Optimism weakened in July, with both sectors becoming less optimistic.

The Japanese Yen moved from ¥110.544 to ¥110.532 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.14% to ¥110.400 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was down by 0.11% to $0.7356.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic data front. German business sentiment figures for July are due out later this morning.

With little else for the markets to consider, expect EUR sensitivity to the numbers.

At the time of writing, the EUR was up by 0.02% to $1.1773.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no material stats to provide the Pound with direction.

On the monetary policy front, BoE member Vlieghe is scheduled to speak. Any forward guidance on policy or views on the economic outlook would influence.

Away from the economic calendar, however, COVID-19 news updates will need monitoring.

At the time of writing, the Pound was up by 0.06% to $1.3756.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar. New home sales figures for June are due out later today.

We don’t expect too much influence from the numbers, as the markets look ahead to Wednesday’s policy decision.

At the time of writing, the U.S Dollar Spot Index was up by 0.02% to 92.9260.

For the Loonie

It’s a quiet start to the week, with no major stats due out to provide the Loonie with direction.

The 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 0.11% to C$1.2578 against the U.S Dollar.

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