Economic Data from the Eurozone and the Canada Put the EUR and Loonie in Focus
Earlier in the Day:
It’s was another busy start to the day on the economic calendar this morning. The Aussie Dollar and the Japanese Yen were in action this morning, with RBA scheduled to deliver its policy decision later this morning.
For the Japanese Yen
In January, the Job to applications ratio increased from 1.06 to 1.10, coming in ahead of a forecasted 1.06. Unemployment figures also beast estimates, with the unemployment rate holding steady at 2.9%. Economists had forecast a pickup to 3.0%.
Capital Spending fell by 4.8%, year-on-year, in the 4th quarter. In the 3rd quarter, capital spending had fallen by 10.6%.
The Japanese Yen moved from ¥106.822 to ¥106.820 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.10% to ¥106.87 against the U.S Dollar.
For the Aussie Dollar
Building approval and current account figures were in focus this morning.
In January, building approvals tumbled by 19.4%, reversing a 12.0% jump in December. Economists had forecast 3% fall.
According to the ABS,
- Private sector houses fell 12.2%, while private sector dwellings excluding houses tumbled 39.5%.
In the 4th quarter, the current account surplus widened from A$10.0bn to A$14.5bn. Economists had forecasted a widening to A$13.1bn.
The Aussie Dollar moved from $0.77712 to $0.77702 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.10% to $0.7764.
At the time of writing, the Kiwi Dollar was down by 0.01% to $0.7264.
The Day Ahead:
For the EUR
It’s a busy day ahead on the economic calendar. The German economy is back in the spotlight, with Eurozone inflation figures also in focus.
From Germany, retail sales figures for January and unemployment numbers for February will provide direction.
A recent pickup in consumer confidence will need to translate into a rise in spending and an improvement in employment figures.
Expect weak numbers to test support for the EUR.
Later in the day, prelim February inflation figures for the Eurozone are also due out. Market sensitivity has picked up, so expect any further pickup in inflationary pressures to influence.
At the time of writing, the EUR was down by 0.09% to $1.2038.
For the Pound
It’s a particularly quiet day ahead on the economic calendar. There are no material stats from the UK to provide the Pound with direction.
The lack of stats will leave the Pound in the hands of market risk sentiment on the day. In spite of last week’s pullback, downside risks for the Pound will likely remain limited near-term.
At the time of writing, the Pound was down by 0.01% to $1.3923.
Across the Pond
It’s also a quiet day ahead on the economic calendar. There are no material stats due out of the U.S to provide the markets with direction.
The lack of stats will leave the Dollar in the hands of chatter from Capitol hill and FOMC member commentary on the day.
Biden’s COVID-19 relief package has made its way to the Senate, so expect updates from talks ahead of a vote.
With the markets looking to get a sense on where the FED sits vis-à-vis inflation, FOMC member speeches will also begin to garner greater interest.
At the time of writing, the Dollar Spot Index was up by 0.04% to 91.075.
For the Loonie
It’s a busy day ahead. 4th quarter and December GDP numbers are due out later today.
With little else for the markets to consider, expect the numbers to influence.
At the time of writing, the Loonie was down by 0.02% to C$1.2649 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.