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Bob Mason
Federal Reserve building with twenty dollar bill on grunge texture

Earlier in the Day:

It’s was a relatively quiet start to the day on the economic calendar this morning. While the China markets were closed, the Japanese Yen was in action in the early hours.

For the Japanese Yen

In January, Japan’s trade balance fell from a ¥749.6bn surplus to a ¥323.9bn deficit. Economists had forecast a deficit of ¥600.0bn.

According to figures released by the  Ministry of Finance,

  • Compared with January 2020, exports rose by 6.4% to ¥5.780bn, while imports fell by 9.5% to ¥6.104bn.
  • Exports to China jumped by 37.5%, supporting a 19.4% increase in exports to Asia.
  • To the U.S, exports fell by 4.8%, however, with exports to Europe falling by 10.3%.
  • Imports from the U.S fell by 14%, with imports from Asia declining by 4.5%.

The Japanese Yen moved from ¥106.024 to ¥106.06 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.02% to ¥105.36 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was down by 0.15% to $0.7746, with the Kiwi Dollar down by 0.26% to $0.7196.

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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.

With little else to consider, expect car registration figures for January will draw some attention.

At the time of writing, the EUR was down by 0.12% to $1.2091.

For the Pound

It’s a relatively busy day ahead on the economic calendar. January inflation figures are due out later today.

With the UK government making progress on the vaccination front, optimism towards the UK economic recovery has improved. A pickup in inflationary pressures would provide further upside for the Pound.

At the time of writing, the Pound was down by 0.22% to $1.3873.

Across the Pond

It’s a busy day ahead on the economic calendar. Key stats include retail sales, industrial production, and wholesale inflation figures.

Expect January’s retail sales figures to have the greatest influence on the Dollar and market risk sentiment.

On the monetary policy front, the FOMC meeting minutes late in the U.S session will also draw attention. The minutes will need to be aligned with FED Chair Powell’s assurances of lower for longer…

At the time of writing, the Dollar Spot Index was up by 0.24% to 90.728. A jump in U.S Treasury yields supported by expectations of a pickup in inflationary pressures supported demand for the Dollar.

For the Loonie

It’s a relatively quiet day on the economic data front. January inflation figures are due out late in the day.

While we will expect the numbers to influence, crude oil inventory numbers will also provide direction in the day.

At the time of writing, the Loonie was down by 0.15% to C$1.2709 against the U.S Dollar.

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

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