Eurozone Inflation and U.S ADP Nonfarm Payrolls Put the EUR and Dollar in Focus

Earlier in the Day:

It was a relatively quiet start to the Asian session on the economic calendar. The Kiwi Dollar was in action early this morning.

For the Kiwi Dollar

Employment increased by 0.1% in the 4^th quarter, coming up short of a 0.3% forecast. In the 3^rd quarter, employment had jumped by 2.0%. As a result of the increase, however, the unemployment rate fell from 3.3% to 3.2%. Economists had forecast an unemployment rate of 3.4%.

According to NZ Stats,

• Neither full-time nor part-time employment saw material changes in the quarter.
• Full-time employment increased 3.2% annually, however, with part-time employment up 5.7%.
• Job security improved in the quarter. 46.3% of employed people thought there was almost no chance of involuntarily losing their jobs in the next 12-months. This was up from 42.5% last year.

The Kiwi Dollar moved from $0.66398 to $0.66360 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.02% to $0.6637.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.03% to  ¥114.680 against the U.S Dollar, with the Aussie Dollar up by 0.03% to $0.7131.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Prelim January inflation figures for Italy and the Eurozone will be in focus early in the European session. With the ECB in action on Thursday, expect the Eurozone’s numbers to be key.

At the time of writing, the EUR was flat at $1.1272.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction. The lack of stats will leave the markets to look ahead to tomorrow’s BoE monetary policy decision.

At the time of writing, the Pound was up by 0.02% to $1.3525.

Across the Pond

It’s a quieter day on the economic calendar, with ADP nonfarm employment change figures due out later today. Expect the numbers to draw plenty of interest as the markets look to second guess the number of rate hikes for the year ahead.

On Tuesday, the U.S Dollar Spot Index fell by 0.29% to end the day at 96.257.

For the Loonie

It’s a quiet day ahead. Building permit figures for December are due out late in the day. We don’t expect the numbers to influence, however, with geopolitics and crude oil inventories likely to be key drivers today.

At the time of writing, the Loonie was up by 0.04% to C$1.2682 against the U.S Dollar.

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