Economic Data from the UK Puts the Pound in the Spotlight

Earlier in the Day:

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

For the Kiwi Dollar

In May, the Business PMI increased from 58.3 to 58.6. According to the May survey,

• The production sub-index climbed from 64.2 to 65.3, with the new orders sub-index rising from 61.0 to 63.7.
• In May, the deliveries sub-index was also on the rise, while the employment sub-index slipped from 52.2 to 51.5. It was a second consecutive monthly decline and a 3^rd decline in 5-months.

The Kiwi Dollar moved from $0.71940 to $0.71932 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.14% to $0.7192.

For the Japanese Yen

The BSI Large Manufacturing Conditions Index fell from 1.60 to -1.40 for the 2^nd quarter. There was little market reaction in spite of the decline, with Japan’s manufacturing sector continuing to struggle.

The Japanese Yen moved from ¥109.383 to ¥109.377 upon release of the figures. Through the early hours, the Japanese Yen was down by 0.06% to ¥109.40 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was down by 0.03% to $0.7752.

The Day Ahead

For the EUR

It’s another quiet day ahead on the economic data front. Finalized May inflation figures from Spain are due to later today.

We don’t expect the numbers to have a material impact on the EUR, however. Expect further reaction to the ECB press conference, however.

At the time of writing, the EUR was up by 0.12% to $1.2184.

For the Pound

It’s a busy day ahead on the economic calendar.

GDP, industrial and manufacturing production, and trade data for April are due out later this morning.

While the GDP and the manufacturing production figures will be the key drivers, expect continued interest in the trade data.

Away from the economic calendar, any further updates on the UK Government’s plans to full reopen will also be key.

On the monetary policy front, BoE Governor Bailey is also scheduled to speak.

At the time of writing, the Pound was down by 0.01% to $1.4176.

Across the Pond

It’s a quieter day ahead on the economic calendar. Prelim consumer sentiment figures for June will be in focus later today.

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

Away from the economic calendar, chatter from the G7 Summit will also need monitoring.

At the time of writing, the Dollar Spot Index was down by 0.06% to 90.019.

For the Loonie

It’s another particularly quiet day ahead on the economic data front, with no major stats to consider.

The lack of stats will leave the Loonie in the hands of market risk sentiment and the IEA monthly report on the day.

At the time of writing, the Loonie was up by 0.05% to C$1.2090 against the U.S Dollar.

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