Economic Data Puts the GBP and the EUR in Focus after Policy Decisions on Thursday

Earlier in the Day:

It was a quiet start to the day on the economic calendar this morning. The Kiwi Dollar was in action early this morning. Later this morning, the BoJ will also be in focus, delivering its final monetary policy decision of the year.

For the Kiwi Dollar

In December, the ANZ Business Confidence Index fell from -16.4 to -23.2. The own activity outlook sub-component saw a more modest decline from 15.0 to 11.8.

According to the latest ANZ Report,

• Labor shortages and freight disruptions were highlighted as key issues for firms at the end of the year.

Looking at the sub-components,

• Cost expectations slipped from 88.7 to 88.2, while pricing intentions declined from 66.5 to 63.6. Both were still considered to be extremely high.
• Inflation expectations continued to increase, rising from 4.24% to 4.42%.
• Profit expectations continued to decline, falling from -9.7 to -13.1.
• Export and investment intentions remained relatively steady in the month, however.
• Activity vs same month one year ago jumped from 7.6 to 14.8 as a result of easing restrictions.
• Employment vs same month one year ago was also on the rise, increasing from 11.7 to 15.1.

The Kiwi Dollar moved from $0.67952 to $0.67968 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.07% to $0.6795.

Elsewhere

At the time of writing, the Japanese Yen was down by 0.11% to ¥113.790 against the U.S Dollar, with the Aussie Dollar down by 0.06% to $0.7180.

The Day Ahead

For the EUR

It’s a relatively busy day ahead on the economic calendar. German wholesale inflation and business sentiment will be in focus early in the European session. Later in the day, finalized November inflation figures for the Eurozone will also draw interest.

At the time of writing, the EUR was down by 0.04% to $1.1326.

For the Pound

It’s relatively busy day ahead on the economic calendar. Retail sales will be in focus early in the day. With consumer prices on the rise, the markets will be assessing what impact inflation is having on consumption.

Away from the economic calendar, COVID-19 news updates will also need monitoring.

At the time of writing, the Pound was up by 0.01% to $1.3325.

Across the Pond

It’s a particularly quiet day ahead on the economic calendar. There are no major stats to draw interest, leaving FOMC member chatter to influence.

At the time of writing, the Dollar Spot Index was down by 0.04% to 96.006.

For the Loonie

It’s also a particular quiet day ahead on the economic data front. There are no material stats due out to provide the Loonie with direction. The lack of stats will leave the Loonie in the hands of crude oil prices and market risk sentiment.

At the time of writing, the Loonie was down by 0.06% to C$1.2783 against the U.S Dollar.

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