It’s a Busy Day ahead. The EUR, Loonie, Pound, and the Dollar Will Be in Focus

Earlier in the Day:

It is a busy start to the day on the economic calendar this morning. The Japanese Yen, Kiwi Dollar, and the Aussie Dollar were all in action, with stats from China also in focus in the early hours.

For the Japanese Yen

Prelim industrial production figures for May were in focus

According to the Ministry of Economy, Trade and Industry, tumbled by 5.9%, reversing a 2.9% increase from April. Economists had forecast a 2.4% decline.

Industries that mainly contributed to the decrease were: Motor vehicles, production machinery, and electrical machinery, and information and communication electronics equipment.

Industries that mainly contributed to the increase were: Transport equipment (excl. motor vehicles) and inorganic and organic chemicals.

The Japanese Yen moved from ¥110.545 to ¥110.528 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.04% to ¥110.490 against the U.S Dollar.

Out of China

In June, the NBS Manufacturing PMI decreased from 51.0 to 50.9, with the non-Manufacturing PMI falling from 55.2 to 53.5.

Economists had forecast PMIs of 50.8 and 55.0 respectively.

The Aussie Dollar moved from $0.75154 to $0.75142 upon release of the figures that preceded private sector credit figures from the RBA.

For the Kiwi Dollar

In June, the ANZ Business Confidence Index

According to the latest ANZ Report,

• Compared to May, headline business confidence eased 3 points to -0.6%, while firms’ own activity rose 5 points to +31.6%.
• There was little change to both readings from prelim figures.
• Inflation pressures remained intense, leading to a surge in retail price intentions.
  • Cost expectations rose 5 points to a net 86.2%.
  • A net 62.8% of respondents intend to raise their prices, up 6 points.
• Profit expectations rose by 2 points to +5.8%, with export intentions increasing by 1 point to +13.4%.

The Kiwi Dollar moved from $0.69939 to $0.69951 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.04% to $0.6995.

For the Aussie Dollar

Private sector credit figures for May were in focus.

According to the RBA, total credit increased by 0.4% in May, following a 0.3% rise in April.

• Housing credit led the way, rising by 0.6% off the back of a 0.5% increase in April.
• Personal credit rose by 0.2% after having stalled in April.
• Business credit was also on the rise after having fallen by 0.3% in April. In May, business credit was up 0.2%.
• Year-on-year, total credit was up 1.9%. In April, total credit had been up by 3.2%.
• Housing credit (-6.4%) and business credit (-2.0%) weighed in May.

The Aussie Dollar moved from $0.75125 to $0.75110 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.01% to $0.7513.

The Day Ahead

For the EUR

It’s a busy day ahead on the economic data front. French consumer spending and German unemployment figures will be in focus in the early part of the European session.

On the inflation front, prelim inflation figures for France, Italy, and the Eurozone will also draw plenty of interest.

Another pickup in inflationary pressure would likely limit the impact of any weak consumer spending or unemployment figures.

At the time of writing, the EUR was up by 0.03% to $1.1900.

For the Pound

It’s a relatively quiet day ahead on the economic calendar.  Finalized 1^st quarter GDP numbers are due out in the early part of the day.

We don’t expect too much influence from the numbers, however. For the Pound, COVID-19 remains the key driver as the government looks to contain the Delta strain.

At the time of writing, the Pound was up by 0.12% to $1.3852.

Across the Pond

It’s a relatively quiet day ahead.

ADP nonfarm employment change, Chicago PMI, and pending home sales figures are due out.

With a marked improvement in labor market conditions needed to force the FED into action, the ADP numbers will be key.

Any chatter from FOMC members on the day will also need monitoring.

At the time of writing, the Dollar Spot Index was up by 0.02% to 92.066.

For the Loonie

It’s a relatively busy day ahead on the economic data front. GDP numbers for April and May’s RMPI will draw interest.

Expect the GDP numbers to be key.

Crude oil inventory numbers will also influence on the day, however.

At the time of writing, the Loonie was down by 0.01% to C$1.2402 against the U.S Dollar.

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