Inflation figures put the EUR, GBP, and the Loonie in focus ahead of the FOMC meeting minutes late in the day.
It’s was a busier start to the day on the economic calendar this morning. The Kiwi Dollar and the Japanese Yen were in action in the early part of the day.
Away from the economic calendar, there was no change, with the markets needing to continue monitoring COVID-19 numbers and chatter on the COVID-19 stimulus package.
2nd quarter wholesale inflation figures were in focus early on. Quarter-on-quarter, the Producer Input Price Index fell by 1% in the 2nd quarter, following a 0.3% decline in the 1st quarter.
According to NZ Stats,
The Kiwi Dollar moved from $0.66023 to $0.66042 upon release of the data. At the time of writing, the Kiwi Dollar was up by 0.06% to $0.6605.
In July, Japan’s trade balance increased from a ¥269.3bn deficit to an ¥11.6bn surplus. Economists had forecast a ¥77.6bn deficit.
According to figures released by the Ministry of Finance,
In June, core machinery orders slid by 7.6%, month-on-month, following on from a 1.7% rise in May. Year-on-year, orders were down by 22.5%. In May, orders had been down by 16.3%. Economists had forecast a monthly rise of 2% and a year-on-year decline of 17.6%.
The Japanese Yen moved from ¥105.265 to ¥105.138 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.14% ¥105.56 against the U.S Dollar.
At the time of writing, the Aussie Dollar was down by 0.07% to $0.7238.
It’s a relatively quiet day ahead on the economic calendar. Key stats include July’s finalized inflation figures for the Eurozone.
There’s unlikely to be too much influence from the numbers, however. The market focus will remain on the U.S and China, COVID-19, and the U.S stimulus package.
At the time of writing, the EUR was up by 0.02% to $1.1933.
It’s a relatively quiet day ahead on the economic calendar. July inflation figures are due out later today. We don’t expect a long-lasting impact on the Pound, however.
On the day, the focus will be on any Brexit chatter and updates on COVID-19.
At the time of writing, the Pound was up by 0.01% to $1.3240.
It’s 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 the FOMC meeting minutes due out late in the day.
Away from the economic calendar, expect COVID-19 news and the stimulus package to continue to garner interest.
At the time of writing, the Dollar Spot Index was up by 0.08% to 92.345.
It’s a relatively busy day on the economic data front, with July inflation figures due out later today.
We will expect the numbers to influence ahead of the FOMC meeting minutes.
Crude oil inventory numbers will also draw interest on the day. Further drawdowns will be needed to offset any negative sentiment towards consumption.
At the time of writing, the Loonie was up by 0.04% to C$1.3163 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
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.