Economic Data Puts the EUR, Pound, and the U.S Dollar in Focus

Earlier in the Day:

It is a busier start to the Asian session. In the early hours, 4^th quarter GDP numbers from Japan drew interest. Later this morning, the RBA meeting minutes and finalized industrial production figures from Japan are also due out. Expect the RBA meeting minutes to be key as the markets look for any hints of a shift in sentiment on cash rates.

For the Japanese Yen

In the 4^th quarter, the Japanese economy grew by 1.3% quarter-on-quarter, which was down from a 1^st estimate 1.4%. The economy had contracted by 0.9% in the previous quarter. Year-on-year, the economy expanded by 5.4%, down from a 1^st estimate 5.8%. In the 3^rd quarter, the economy had contracted by 3.6% year-on-year.

The Japanese Yen moved from ¥115.538 to ¥115.481 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.03% to ¥115.500 against the U.S Dollar.

Elsewhere

The Aussie Dollar up by 0.08% to $0.7133, while the Kiwi Dollar was flat at $0.6616.

The Day Ahead

For the EUR

2^nd estimate GDP numbers for the Eurozone and ZEW Economic Sentiment figures for Germany and the Eurozone will be key. Other stats include finalized inflation figures from Spain and trade data for the Eurozone. Barring dire trade data, we don’t expect the numbers to have a material impact on the EUR.

At the time of writing, the EUR was up by 0.02% to $1.1309.

For the Pound

Claimant counts and unemployment figures will be the key stats on the day. Employment change and average earnings will also be in focus, however, as the markets look to second guess the Bank of England’s next move.

At the time of writing, the Pound was up by 0.07% to $1.3537.

Across the Pond

Wholesale inflation and NY Empire State Manufacturing numbers will draw attention. With the markets focused on inflation, expect the wholesale inflation numbers to be key. A pickup in wholesale inflationary pressure would place further upward pressure on consumer prices and then the FED.

On Monday, the U.S Dollar Spot Index rose by 0.22% to end the day at 96.298.

For the Loonie

Housing sector numbers are due out later today. Don’t expect the figures to provide the Loonie with direction, however. Geopolitics and market risk sentiment will likely be key on the day.

At the time of writing, the Loonie was up by 0.03% to C$1.2726 against the U.S Dollar.

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