Economic Data Puts the EUR, the Greenback, and the Loonie in Focus

Earlier in the Day

It’s was a busy start to the day on the economic calendar this morning. The Aussie Dollar and the Japanese Yen were in action in the early in the day.

For the Japanese Yen

Inflation and industrial production figures were in focus this morning.

In January, Tokyo core consumer prices fell by 0.4% year-on-year, following a 0.9% decline in December. Economists had forecast a 0.6% decline.

According to the Ministry of Internal Affairs and Communication,

• Prices for furniture and household utensils rose by 2.8%, with prices for housing up by 0.6%.
• There were also increases in prices for clothes & footwear (+0.3%) and culture & recreation (+0.2%).
• Fuel, light, and water charges slumped by 8.5%, with prices for education falling by 1.8%.
• There were also declines in prices for transportation & communication (-1.0%), food (-0.6%), and medical care (-0.3%).
• Prices for goods fell by 1.4%, while prices for services increased by 0.2%.

The Japanese Yen moved from ¥104.250 to ¥104.274 upon release of the figures that preceded industrial production figures.

Industrial production fell by 1.6% in December, following a 0.5% decline in November. Economists had forecast a 1.5% slide.

According to the Ministry of Economy, Trade and Industry,

• Industries that mainly contributed to the decrease were:
  • Motor vehicles.
  • General-purposes and business-oriented machinery.
  • Electrical machinery, and information and communication electronics equipment.
• Industries that mainly contributed to the increase were:
  • Transport equipment (excl. motor vehicles).
  • Chemicals (excl. inorganic, organic chemicals, and medicine).
  • Iron, steel, and non-ferrous metals.

The Japanese Yen moved from ¥104.279 to ¥104.311 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.22% to ¥104.47 against the U.S Dollar.

For the Aussie Dollar

Private sector credit rose by 0.3% in December, following a 0.1% increase in November.

According to the RBA,

• Total housing credit rose by 0.4%, with total business credit rising by 0.2%, month-on-month.
• In November, business credit had fallen by 0.2%, while housing credit had risen by 0.3%.
• Personal credit fell by 0.5%, however, following a 0.1% decline in November.
• Year-on-year, total credit rose by 1.8%.
• Total personal credit tumbled by 12.3%, while housing and business credit rose by 3.5% and by 1.0% respectively.

The Aussie Dollar moved from $0.76709 to $0.76665 upon release of the figures. At the time of writing, the Aussie Dollar down by 0.16% to $0.7671.

Elsewhere

At the time of writing, the Kiwi Dollar was up by 0.04% to $0.7174.

The Day Ahead:

For the EUR

It’s a particularly busy day ahead on the economic calendar.

Key stats include 4^th quarter GDP figures for France, Germany, and Spain. With lockdown measures extending into the 1^st quarter, weaker than expected figures could test market optimism towards any near-term economic recovery.

French consumer spending and German unemployment figures will also influence on the day.

Other stats include prelim Spanish inflation figures for January that will likely have a muted impact on the EUR.

At the time of writing, the EUR was down by 0.09% to $1.2111.

For the Pound

It’s yet another particularly quiet day ahead on the economic calendar. There are no material stats to provide the Pound with direction.

The lack of stats will leave the Pound in the hands of COVID-19 news and any plans on easing lockdown measures. With more virulent strains of the COVID-19 virus hitting the UK, however, it may take some time for the economy to fully reopen.

At the time of writing, the Pound was down by 0.02% to $1.3718.

Across the Pond

It’s another busy day ahead on the economic calendar. December inflation and personal spending figures are due out later today.

Expect personal spending figures to draw plenty of interest.

Other stats include Chicago PMI, pending home sales, and finalized Michigan Consumer Sentiment figures for January.

Barring particularly dire numbers, however, these stats should have a muted impact on market risk sentiment.

Away from the economic calendar, chatter from Capitol Hill and COVID-19 updates will also remain in focus.

At the time of writing, the Dollar Spot Index was up by 0.22% to 90.657.

For the Loonie

It’s a relatively quiet day on the economic data front. GDP and RMPI figures are due out later today.

Expect GDP figures for November to be the key driver.

Away from the economic calendar, expect stimulus talk and COVID-19 news to also influence.

At the time of writing, the Loonie was flat at C$1.2830 against the U.S Dollar.

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