Economic Data Puts the EUR and the GBP in Focus ahead of FED Chair Powell Testimony

Earlier in the Day:

It was another relatively quiet start to the week on the economic calendar this morning. The Kiwi dollar was in focus in the early hours.

For the Kiwi Dollar

Consumer sentiment was in focus in the early hours.

In the 2^nd quarter, the Westpac Consumer Sentiment Index rose from 105.2 to 107.1.

According to the 2^nd Quarter survey,

• The Expected Conditions Index rose from 111,2 to 112.9 with the 1-year economic outlook sub-index climbing from -1.6 to 4.4.
• There was also an improvement in the current financial situation, with the sub-index rising from -11.7 to -5.4. This was above the average of -8.5.
• There were declines in the good time to buy and 5-year economic outlook sub-indexes, however.
• In the 2^nd quarter, the good time to buy sub-index fell from 4.2 to 2.0. The 5-year outlook index fell from 20.1 to 17.7.

The Kiwi Dollar moved from $0.69854 to $0.69888 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.16% to $0.6977.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.01% to ¥110.26 against the U.S Dollar, while the Aussie Dollar was down by 0.16% to $0.7523.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic data front. Flash consumer confidence figures for the Eurozone will be in focus late in the European session,

With little else for the markets to consider, expect market sensitivity to today’s numbers. Forecasts are EUR positive.

On Monday, ECB President Lagarde had talked of a speedier than expected economic recovery fueled by consumer spending. Weak numbers would test question the optimism…

At the time of writing, the EUR was down by 0.12% to $1.1905.

For the Pound

It’s also a relatively quiet day ahead on the economic calendar.

CBI Industrial Trend Orders for June are due out later today. With the BoE in action later in the week, we can expect some sensitivity to today’s numbers.

Away from the economic calendar, however, COVID-19 news will remain a key consideration near-term.

At the time of writing, the Pound was down by 0.21% to $1.3905.

Across the Pond

It’s a quiet day ahead on the economic calendar. Housing sector data is due out late in the day.

We don’t expect too much influence form the numbers, however.

FED Chair Powell is scheduled to deliver testimony late in the day. The markets will be looking for any deviation from last week’s hawkish stance.

At the time of writing, the Dollar Spot Index was up by 0.04% to 91. 369.

For the Loonie

It’s a particularly quiet day ahead on the economic data front. There are no material 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 0.14% to C$1.2380 against the U.S Dollar.

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