It's a busier day on the economic calendar, with inflation figures for June in focus today. Expect the numbers from the U.S to be key as the markets monitor the latest spread of the Delta variant.
It was another relatively busy start to the day on the economic calendar this morning. The Aussie Dollar was in action this morning, with trade data from China also in focus.
In June, the NAB Business Confidence Index fell by 9 points to +11 points. Economists had forecast a more modest decline to 19. The index had fallen by 3 points to +20 index points in May.
NAB Business Confidence: According to the June Survey,
Looking at the sub-components:
The Aussie Dollar moved from $0.74858 to $0.74885 upon release of the figures, which preceded trade data from China. At the time of writing, the Aussie Dollar was up by 0.33% to $0.7501.
Trade data drew plenty of interest this morning following last week’s jitters over the sustainability of the global economic recovery.
In June, China’s USD trade surplus widened from $45.54bn to $51.53bn,
The Aussie Dollar moved from $0.75003 to $0.75016 upon release of the figures.
At the time of writing, the Japanese Yen was up by 0.02% to ¥110.350 against the U.S Dollar, with the Kiwi Dollar up by 0.34% to $0.7005.
It’s a relatively quiet day ahead on the economic data front. Finalized June inflation figures for France and Germany are due out later this morning.
Barring a marked upward revision, however, the numbers will likely have a muted impact on the EUR.
Following the ECB’s revision to its price stability objective, softer inflationary pressure would further delay any moves by the ECB on the monetary policy front.
Away from the economic calendar, COVID-19 news updates will also need monitoring.
At the time of writing, the EUR was up by 0.08% to $1.1870.
It’s another 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 Pound in the hands of market risk sentiment in the day, with COVID-19 a main area of focus once more. Government plans to fully reopen the UK economy should deliver Pound support.
At the time of writing, the Pound was up by 0.14% to $1.3903.
Inflation figures for June are due out later in the day. A further pickup in inflationary pressure would question the FED’s view on inflation and the uptick being transitory.
At the time of writing, the Dollar Spot Index was down by 0.02% to 92.403.
It’s another particularly quiet day ahead on the economic data front. There are no material stats to provide the Loonie with direction.
With the BoC in action tomorrow, the markets will likely consider the continued spread of the Delta strain and impact on certain key economies and demand for crude.
At the time of writing, the Loonie was up by 0.06% to C$1.2446 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.