FXEMPIRE
All

Economic Data Puts the Loonie and Greenback in Focus Today

With stats on the lighter side today, the Loonie could go for another swim should GDP numbers disappoint.
Bob Mason
Light Board

Earlier in the Day:

It was a relatively quiet day on the Asian economic calendar in the earlier hours of this morning.

The Aussie Dollar was in action early on, with November private sector credit figures providing direction.

Support for the Aussie Dollar and Kiwi Dollar kicked in this morning. News of the U.S and China planning to sign the phase 1 agreement in early January provided support.

For the Aussie Dollar

Private sector credit rose by 0.1% in November, month-on-month, according to figures released by RBA, falling short of a forecasted rise of 0.3%. In October, private sector credit had risen by just 0.1%.

  • Personal credit fell by a further 0.5%, following a 0.6% decline in October.
  • Housing credit increased by 0.2%, following a 0.3% rise in October.
  • Business credit increased by 0.2% after having stalled in October.
  • Year on year, total credit rose by 2.3%. In November 2018, total credit had risen by 4.4%.

The Aussie Dollar moved from $0.68985 to $0.68984 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.13% to $0.6909.

Elsewhere

At the time of writing, the Kiwi Dollar up by 0.17% to $0.6610, while the Japanese Yen was flat at ¥109.44 against the greenback.

The Day Ahead:

For the EUR

It’s a quiet day ahead on the economic calendar. There are no material stats de out of the Eurozone to provide the EUR with direction.

A lack of stats will allow the markets to consider what lies ahead, with volumes likely to be on the lighter side.

There’s Brexit, the threat of tariffs on EU goods, disappointing consumer confidence and private sector PMI and employment numbers to consider.

The good news is that the threat of a dismemberment abated as the year progressed and Lagarde may be the right person for the top job at this juncture.

At the time of writing, the EUR was down by 0.01% to $1.1078.

For the Pound

It’s also a quiet day ahead on the economic calendar, with no material stats due out of the UK to provide the Pound with direction.

While there is a lack of data, the markets may begin to consider what lies ahead with Johnson sitting with a comfortable majority.

Unlike his counterpart in the U.S, he doesn’t have to concern himself with the opposition… If he sticks to the script and deviates only slightly, he may also provide a much-needed boost to the UK that pretty much stagnated over the last 3-years.

At the time of writing, the Pound was up by 0.11% to $1.3013.

Across the Pond

It’s a busier day on the data front, with November new home sales due out later today.

With stats and volumes on the lighter side, we can expect the Dollar to be responsive to the numbers. Any negative numbers would likely have a muted impact, however, following impressive housing starts and building permit figures released last week.

On the geopolitical risk front, perhaps some final pearls of wisdom from the U.S President’s Twitter account?

At the time of writing, the Dollar Spot Index was down by 0.02% to 97.668.

For the Loonie

It’s a relatively busy day on the economic calendar. October GDP numbers are due out later this afternoon.

Following some pretty unimpressive numbers last week, any weak numbers will sink the Loonie further.

The BoC may be looking to hold out, however, with the USMCA and Phase 1 agreement providing support.

New trade terms are going to take some time to wash out the effects of punitive tariffs to support global trade terms…  As we know, the markets have a tendency to be rather impatient…

The Loonie was up by 0.05% to C$1.3154 against the U.S Dollar, at the time of writing.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US