German Factory Orders, Brexit and Trade to Influence the Majors

While we can expect German factory orders to influence the EUR, geopolitics will be a key driver. Brexit and trade will be in focus throughout the day…
Bob Mason
Currency exchange notice board

Earlier in the Day:

It was a particularly quiet day on the economic calendar through the Asian session this morning.

There were no material stats to provide direction at the start of the week, with the China markets closed for one final day.

A lack of stats left the majors in the hands of Friday’s nonfarm payroll numbers and the outlook towards trade talks, which tested risk sentiment at the start of the week.

It was risk-off in the early part of the day, with Chinese Yuan, Aussie Dollar, and Kiwi Dollar seeing early losses.

For the Majors

At the time of writing, the Aussie Dollar was down by 0.21% to $0.6757, with the Kiwi Dollar down by 0.02% to $0.6319. The Japanese Yen was up by 0.14% to ¥106.79 against the U.S Dollar, supported by jittery markets this morning.

The Day Ahead:

For the EUR

It’s a particularly quiet day ahead on the economic calendar. Germany’s August factory order numbers are due out in the early part of the day.

Off the back of some disappointing private sector PMIs, we can expect the EUR to be responsive to the figures with little else on the economic calendar to provide a distraction.

With no material stats due out of the U.S later in the day, geopolitics and FOMC member chatter will provide direction later in the session.

On the geopolitical front, there’s Brexit and trade war chatter to consider. Will the U.S President elaborate on EU tariffs?

At the time of writing, the EUR was up by 0.07% to $1.0987.

For the Pound

It’s a quiet day ahead on the data front. Economic data is limited to September house prices figures that will unlikely influence the Pound.

The lack of stats leaves Brexit chatter front and center. With the British Prime Minister running out of time, any hint of an agreeable alternative to the Irish Backstop would be a boon for the Pound.

At the time of writing, the Pound was down by 0.01% to $1.2330.

Across the Pond

It’s a particularly quiet day ahead on the economic calendar, with no material stats due out of the U.S later today.

A lack of stats will leave the Oval Office and Beijing in focus. The markets will be looking for positive chatter ahead of a resumption of negotiations.

While any positive sentiment towards progress on trade talks would be positive for the Dollar, negative sentiment towards the U.S economy would limit any upside.

The Dollar Spot Index was down by 0.04% to 98.771 at the time of writing.

For the Loonie

It’s also a quiet day on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.

A lack of stats will leave the Loonie in the hands of crude oil prices on the day.

Against the greenback, there could be some further upside, with monetary policy divergence continuing to favor the Loonie near-term.

The Loonie was down by 0.01% at C$1.3315, against the U.S Dollar, at the time of writing. A fall in crude oil prices weighed early on.

 

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