Economic Data Puts the EUR and the Greenback 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 Aussie Dollar were in action this morning.

For the Kiwi Dollar

GDP numbers were in focus in the early hours.

In the 1^st quarter, the economy grew by 1.6%, quarter-on-quarter, coming in ahead of a forecasted 0.5% expansion. In the 4^th quarter of last year, the economy had contracted by 1.0%.

According to NZ Stats, the services industry, which accounts for two thirds of the economy, delivered the largest contribution.

The Kiwi Dollar moved from $0.70551 to $0.70753 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.61% to $0.7094.

For the Aussie Dollar

Employment figures were in focus.

In May, employment increased by 115.2k in May, reversing a 30.6k decline from April. Economists had forecast a more modest 30.0k rise.

Full employment increased by 97.5k following a 33.8k rise in April.

As a result of the pickup in hiring, the unemployment rate fell from 5.5% to 5.1%. Economists had forecast for the unemployment rate to hold steady at 5.5%.

According to the ABS,

• The number of unemployed fell by 53k to 701k.
• While the unemployment rate fell to 5.1%, the participation rate increased 0.3 percentage points to 66.2%. This was close to a historical high of 66.3% seen back in March 2021.

The Aussie Dollar moved from $0.76269 to $0.76290 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.32% to $0.7634.

Elsewhere

Through the early hours, the Japanese Yen was up by 0.05% to ¥110.65 against the U.S Dollar.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic data front. Finalized inflation figures for the Eurozone are due out later today.

Stats in line with prelim numbers should deliver EUR support though the upside will likely be limited. The ECB continues to see inflation as transitory, removing near-term influence on monetary policy.

At the time of writing, the EUR was up by 0.03% to $1.9999.

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.

Updates on government plans to ease remaining restrictions will remain a key driver.

At the time of writing, the Pound was up by 0.04% to $1.3993.

Across the Pond

It’s a relatively busy day ahead on the economic calendar. Key stats include Philly FED Manufacturing numbers and the weekly jobless claim figures.

Barring particularly dire manufacturing numbers expect the weekly initial jobless claims to have the greatest impact on the Dollar.

Away from the economic calendar, FOMC member chatter and news from Capitol Hill will also need monitoring.

At the time of writing, the Dollar Spot Index was up by 0.29% to 91.396.

For the Loonie

It’s a relatively quiet day ahead on the economic data front. Foreign securities purchases for April are due out later today.

We don’t expect the numbers to influence, however, leaving the Loonie in the hands of market risk sentiment on the day.

At the time of writing, the Loonie was down by 0.01% to C$1.2278 against the U.S Dollar.

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