Economic Data Puts the Pound and the UK Economy in the Spotlight

Earlier in the Day:

It’s was another quiet start to the Day on the economic calendar this morning, with the China market closed. Ahead of the Asian open, the Kiwi Dollar was in action once more.

For the Kiwi Dollar

In January, the Business PMI jumped from 48.7 to 57.5, reversing a tumble from 55.3 to 48.7 in December.

Looking at the sub-indexes,

• The production sub-index rose from 52.3 to 59.1, with the employment sub-index rising from 50.2 to 55.4.
• More impressively, however, was a jump in the new orders sub-index from 50.3 to 62.4. Back in April 2020, the sub-index had stood at 16.9.

The Kiwi Dollar moved from $0.72264 to $0.72291 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.04% to $0.7230.

Elsewhere

At the time of writing, the Japanese Yen was flat at ¥104.75 against the U.S Dollar, while the Aussie Dollar was down by 0.04% to $0.7749.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar.

Key stats include finalized January inflation figures for Spain and December industrial production figures for the Eurozone.

Expect the Eurozone’s industrial production figures to be the key driver.

At the time of writing, the EUR was flat at $1.2130.

For the Pound

It’s a busy day ahead on the economic calendar. Industrial and manufacturing production figures December and 4^th quarter GDP numbers will be in focus.

With the UK government’s vaccine rollout programme delivering a high vaccine rate, the markets will be looking for a speedy economic recovery. Concerns over the possible impact of new strains of the virus on lockdown measures remains an issue, however.

That could limit the cushioning from any dire 4^th quarter and December numbers.

Other stats including business investment and trade data are also due out but should have a muted impact on the Pound.

At the time of writing, the Pound was down by 0.04% to $1.3810.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar. Prelim consumer sentiment and expectation figures for February are due out later today.

Expect the Michigan Consumer Sentiment figures to have the greatest impact.

Away from the economic calendar, chatter from Capitol Hill will continue to be a key driver.

On Thursday, the Dollar Spot Index rose by 0.05% to 90.417.

For the Loonie

It’s a relatively quiet day on the economic data front. Wholesale sales figures for December are due out.

Barring dire numbers, however, the stats should have a muted impact on the Loonie.

Market risk sentiment and crude oil prices will remain the key driver at the end of the week.

At the time of writing, the Loonie was flat at C$1.2705 against the U.S Dollar.

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