Economic Data Puts the EUR and the U.S Dollar Back in Focus
Earlier in the Day:
It is a relatively busy start to the day on the economic calendar this morning. The Japanese Yen and the Aussie Dollar were in action in the early hours of this morning.
For the Japanese Yen
According to the Ministry of Internal Affairs and Communication, Tokyo’s annual core rate of inflation softened from 0.5% to 0.2% in January. Economists had forecast a sofenting to 0.3%.
The Japanese Yen moved from ¥115.379 to ¥115.354 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.03% to ¥115.410 against the U.S Dollar.
For the Aussie Dollar
Following consumer price inflation on Tuesday, wholesale inflation drew attention this morning.
In the 4th quarter, Australia’s annual wholesale rate of inflation picked up from 2.9% to 3.7%. Quarter-on-quarter, the producer price index rose by 1.3%, following on from a 1.1% increase in the previous quarter.
The Aussie Dollar moved from $0.70309 to $0.70334 upon release of the figures. At the time of writing, the Aussie Dollar was flat at $0.7033.
At the time of writing, the Kiwi Dollar was down by 0.14% to $0.6574.
The Day Ahead
For the EUR
It’s a busy day ahead on the economic calendar. 4th quarter GDP numbers for France, Germany, and Spain will be the key stats of the day. French consumer spending figures are also due out but should have a muted impact. Upbeat GDP numbers would give the ECB the opportunity to shift its position on inflation and interest rates.
At the time of writing, the EUR was up down 0.03% to $1.1146.
For the Pound
It’s yet another particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction. The lack of stats will leave market sentiment towards BoE monetary policy and UK politics to provide direction.
At the time of writing, the Pound was up by 0.03% to $1.3387.
Across the Pond
It’s a busy day ahead on the economic data front. Inflation and personal spending figures will be key later today. Another pickup in inflationary pressure would force the markets to price in a more hawkish rate path for the year.
Other stats include finalized consumer sentiment and expectation figures. Barring any marked revisions, however, the numbers should have a muted impact on the Dollar and broader markets.
On the monetary policy front, FOMC member chatter will also need monitoring on the day.
On Thursday, the U.S Dollar Spot Index rose by 0.81% to end the day at 97.255.
For the Loonie
It’s a particularly quiet day ahead. There are no material stats due out of Canada to influence the Loonie. The lack of stats will leave the Loonie in the hands of crude oil prices and market risk sentiment on the day. Upbeat stats from key economies would support the BoC’s more hawkish outlook.
At the time of writing, the Loonie was flat at C$1.2742 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.