Economic Data Puts the Loonie in Focus, as COVID-19 News Supports Riskier AssetsEconomic data puts the Loonie in focus, while EU Recovery Fund talks continue. Further progress towards a vaccine remains near-term negative for the Greenback, however.
Earlier in the Day:
It was a relatively busy start to the day on the economic calendar. The Japanese Yen was back in action along with the Aussie Dollar.
Away from the economic calendar, riskier assets found early support on news of further progress towards a COVID-19 vaccine.
Looking at the latest coronavirus numbers
On Monday, the number of new coronavirus cases rose by 182,589 to 14,850,887. On Sunday, the number of new cases had risen by 246,207. The daily increase was lower than Saturday’s rise and 199,164 new cases from the previous Monday.
Germany, Italy, and Spain reported 5,413 new cases on Monday, which was up from 491 new cases on Sunday. On the previous Monday, just 2,700 new cases had been reported.
From the U.S, the total number of cases rose by 62,790 to 3,961,429 on Monday. On Sunday, the total number of cases had increased by 65,368. On Monday, 20th July, a total of 65,488 new cases had been reported.
For the Japanese Yen
In June, core consumer prices remained unchanged compared with June 2019. Economists had forecast a 0.1% decline.
According to figures released by the Ministry of Internal Affairs and Communication., the annual rate of inflation held steady at 0.1%.
The Japanese Yen moved from ¥107.243 to ¥107.231 upon release of the minutes and stats. At the time of writing, the Japanese Yen was up by 0.07% to ¥107.19 against the U.S Dollar.
For the Aussie Dollar
The RBA Meeting Minutes were in focus in the late part of the Asian session.
Salient points from the minutes included:
- Timely indicators of economic activity had generally picked up, suggesting that the worst had passed.
- Uncertainty over the economic outlook remained, however, with the outlook hinged on containment of the virus.
- Members noted that there had been a pickup in consumer spending, though uncertainty over the outlook on spending remained.
- It was likely that fiscal and monetary support would be required for some time.
- The Board remained committed to supporting jobs, incomes, and businesses and to make sure that Australia is well placed for recovery.
The Aussie Dollar moved from $0.70267 to $0.70217 upon the release of the minutes. At the time of writing, the Aussie Dollar was up by 0.11% to $0.7024.
At the time of writing, the Kiwi Dollar was down by 0.02% to $0.6576.
The Day Ahead:
For the EUR
It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.
The lack of stats will leave the EUR in the hands of updates from the EU Recovery Fund talks and market risk sentiment.
While the EU Recovery Fund would be a boost for the struggling economies of Italy and Spain, the coronavirus remains a threat. Progress towards a COVID-19 vaccine, however, has continued to ease market jitters over the virus.
At the time of writing, the EUR was up by 0.10% to $1.1459.
For the Pound
It’s 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.
Brexit remains in focus and will continue to limit any upside in the Pound, barring the announcement of an agreement on trade.
At the time of writing, the Pound was up by 0.11% to $1.2675.
Across the Pond
It’s also a particularly quiet day ahead for the U.S Dollar. There are no material stats due out to provide the Greenback with direction.
A lack of stats will leave the Dollar in the hands of updates on COVID-19 and chatter from Washington.
At the time of writing, the Dollar Spot Index was down by 0.13% to 95.705.
For the Loonie
It’s a busier day ahead on the economic calendar. May retail sales and June new house price figures are due out of Canada later today.
Barring a “risk-off” event, we would expect the retail sales figures to have the greatest impact.
The markets will be looking for a rebound from April’s tumble.
Away from the stats, any rise in tension between the U.S and China will need consideration along with COVID-19 updates.
At the time of writing, the Loonie was up by 0.13% to C$1.3518 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.