Economic Data Puts the Pound in the Spotlight, with Brexit Chatter also in Focus

Bob Mason

It's a busier day on the economic calendar that puts the Pound in focus. Brexit, COVID-19 news, and chatter from Capitol Hill also need monitoring.

Pound Coins Dollar

Earlier in the Day:

It’s was a quiet start to the day on the economic calendar this morning. The British Pound was in action in the early part of the day.

The RICS House Price Balance stood at 68% in October, up from 62% in September. Economists had forecast 55% for the month. The numbers had a muted impact on the Pound, however, ahead of economic data due out later today.

With no material stats from the Asian region, sentiment towards the later COVID-19 vaccine news supported the Asian majors after the Dollar move on Wednesday.

For the Majors

At the time of writing, the Aussie Dollar was up by 0.07% to $0.7286, with the Kiwi Dollar up by 0.28% to $0.6901. The Japanese Yen was up by 0.15% to ¥105.27 against the U.S Dollar.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Finalized October inflation figures for Germany and Eurozone industrial production figures are due out.

Barring particularly dire numbers, however, the stats are likely to have a relatively muted impact on the EUR.

From the ECB, the Economic Bulletin for November is also due out and will garner plenty of attention.

The markets will be looking to get a sense of how the ECB sees the economic recovery ahead of next month’s policy decision. At the last ECB press conference, ECB President Lagarde had spoken of further support coming in December. Lagarde reaffirmed next month’s planned easing in a speech on Wednesday.

Away from the economic calendar, chatter from Capitol Hill, and updates on Brexit and COVID-19 will also influence.

At the time of writing, the EUR was up by 0.07% to $1.1785.

For the Pound

It’s a busy day ahead on the economic calendar. 3rd quarter GDP, industrial and manufacturing production, and trade data are due out later this morning.

Expect the numbers to influence, though, with the reintroduction of lockdown measures this month, any major upside in the Pound may be muted.

Late in the day, BoE Governor Bailey is scheduled to speak. There could be the talk of negative rates should the economic data disappoint.

Away from the economic calendar, however, Brexit and COVID-19 updates will likely remain the key drivers on the day.

At the time of writing, the Pound was up 0.01% to $1.3223.

Across the Pond

It’s a relatively quiet day ahead for the U.S Dollar. October inflation figures are due out later this afternoon, along with the weekly jobless claims figures.

While any softening of inflationary pressures tends to be Dollar negative, we would expect the jobless claims to be the key driver.

An unexpected rise in initial jobless claims will test support for riskier assets later in the day.

Away from the economic calendar, chatter from Capitol Hill and COVID-19 news updates will also influence.

At the time of writing, the Dollar Spot Index was down by 0.04% to 93.004.

For the Loonie

It’s a quiet day on the economic data front. There are no material stats to provide the Loonie with direction on the day.

A lack of stats will leave the Loonie in the hands of market risk sentiment and COVID-19 news updates.

On the oil front, the IEA’s monthly report will provide direction on the day.

At the time of writing, the Loonie was down by 0.01% to C$1.3064 against the U.S Dollar.

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

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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