Economic Data Puts the EUR and the Pound in Focus Ahead of the FOMC Meeting Minutes

Earlier in the Day:

It was a relatively quiet start to the day on the economic calendar this morning. The Kiwi Dollar was in action in the early hours.

Later this morning, the Aussie Dollar and Japanese Yen will also be in focus. From Australia, consumer sentiment figures for May will draw plenty of interest. A pickup in consumer sentiment would support the RBA’s economic outlook.

For the Japanese Yen, finalized industrial production figures for March are due out later this morning. Barring a marked revision from prelim figures, however, we don’t expect too much influence on the Yen.

For the Kiwi Dollar

Wholesale inflation was in focus this morning.

In the 1^st quarter, the producer input price index increased by 2.1%, quarter-on-quarter, following a 0.6% rise in the 4^th quarter of last year.

According to NZ Stats,

• Prices paid for electricity and gas supply producers rose 28.7% in the March quarter. The jump in wholesale prices for electricity generation was attributed to lower lake levels in the South Island.

The Kiwi Dollar moved from $0.72430 to $0.72446 upon release of the minutes. At the time of writing, the Kiwi Dollar was up by 0.05% to $0.72419.

Elsewhere

At the time of writing, the Japanese Yen was down by 0.02% to ¥108.92 against the U.S Dollar, while the Aussie Dollar was up by 0.03% to $0.7794.

The Day Ahead

For the EUR

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

Expect any upward revisions to prelim figures to deliver EUR support.

With the markets focused on the FOMC meeting minutes late in the day, however, upside could be limited on the day.

At the time of writing, the EUR was flat at $1.2222.

For the Pound

It’s a relatively busy day ahead on the economic calendar. Inflation figures for April are due out later today.

Following upbeat employment figures for April, a pickup in inflationary pressures would deliver the Pound with further support.

At the time of writing, the Pound was down by 0.02% to $1.4187.

Across the Pond

It’s a quiet day ahead on the economic calendar. There are no material stats due out of the U.S to provide the Greenback with direction later today.

While there are no stats, monetary policy is back in focus. The FOMC meeting minutes due out late in the day will be the key driver on the day.

The markets will be in search of a broad agreement that inflation alone would not be enough to cause a shift in policy.

On Tuesday the Dollar Spot Index fell by 0.46% to end the day at 89.750.

For the Loonie

It’s a relatively busy day ahead on the economic calendar. Inflation figures for April are due out later today.

Expect plenty of influence from today’s stats. Crude oil inventory numbers will also provide direction, however.

At the time of writing, the Loonie was flat at C$1.2066 against the U.S Dollar.

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