Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Bob Mason
World currency exchange rates on world map

Earlier in the Day:

It was a busy start to the day on the economic calendar on Tuesday. The Aussie Dollar, Kiwi Dollar, and the Japanese Yen were in action early in the day. There were also stats from China for the markets to consider.

Away from the economic calendar, COVID-19 news from the U.S continued to leave a dark cloud over the markets. California reported a record number of cases, with Arizona reintroducing lockdown measures.


Looking at the latest coronavirus numbers

On Monday, the number of new coronavirus cases rose by 153,341 to 10,382,371. On Sunday, the number of new cases had risen by 136,417. The daily increase was higher than Sunday’s rise and up from 126,214 new cases from the previous Monday.

Germany, Italy, and Spain reported 803 new cases on Monday, which was up from 650 new cases on Sunday. On the previous Monday, just 952 new cases had been reported.

From the U.S, the total number of cases rose by 41,940 to 2,674,382 on Monday. On Sunday, the total number of cases had risen by 35,905. On Monday, 22nd June, a total of 29,864 new cases had been reported.

For the Japanese Yen

Industrial production slid by 8.4% in May, following on from a 9.8% tumble in April, according to prelim figures. Economists had forecast a 5.6% decline.

According to the Ministry of Economy, Trade, and Industry,

Industries that mainly contributed to the decrease were:

  • Motor vehicles.
  • Production machinery.
  • Iron, steel, and non-ferrous metals.

Forecasts for June were revised up from 3.9% to 5.7%, with production projected to rise by 9.2% in July.

Industries that mainly contributed to the increase in June:

  • Transport equipment.
  • Production machinery.
  • Electrical machinery, and information, and communication electronics equipment.

Industries that mainly contributed to the increase in July:

  • Transport equipment.
  • Chemicals
  • Electrical machinery, and information, and communication electronics equipment.

The Japanese Yen moved from ¥107.578 to ¥107.583 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.11% to ¥107.70 against the U.S Dollar.

For the Aussie Dollar

May’s private sector credit figures were in focus early on. Month-on-month, private sector credit fell by 0.1% in May, following a stall in April.

According to figures released by RBA,

  • Personal credit fell by a further 1.2%, following a 3.2% slide in April.
  • Business credit declined by 0.6%, reversing a 0.2% rise in April.
  • Housing sector credit rose by 0.2%, following on from a 0.2% increase in April.
  • Year-on-year, total credit increased by 3.2%.
  • Personal credit was down by 10.2%, while business credit rose by 5.9%. Housing sector credit increased by 3.1%.

The Aussie Dollar moved from $0.68713 to $0.68756 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.13% at $0.6875.

For the Kiwi Dollar

June business confidence figures drew attention this morning. The ANZ Business Confidence Index increased from -41.8 to -34.4 in June.

According to the latest ANZ Report,

  • A net 26% of firms expect weaker economic activity in their own business.
  • The construction sector had the weakest activity outlook at -35%, down by 7.2 percentage points.
  • By contrast, the retail and agricultural sectors saw the largest improvements.

The Kiwi Dollar moved from $0.64152 to $0.64167 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.02% at $0.6423.

Out of China

The NBS Manufacturing PMI rose from 50.6 to 50.9 in June, with the Non-Manufacturing PMI increasing from 53.6 to 54.4.

As a result of the uptick, the Composite PMI came in at 54.2, up from 53.4 in May.

The Aussie Dollar moved from $0.68631 to $0.68676 upon release of the figures.


The Day Ahead:

For the EUR

It’s a busy day ahead on the economic calendar. French consumer spending figures for May and prelim June inflation figures from France, Italy, and the Eurozone are due out. Finalized 1st quarter GDP numbers for Spain are also in focus.

We would expect consumer spending figures from France to have the greatest influence, however. Consumer spending will be key to any economic recovery and rebound in service sector activity. As these are figures for May, any impact on the EUR may be short-lived, however.

Away from the economic calendar, the markets will need to continue to monitor COVID-19 and chatter from Trump on tariffs.

At the time of writing, the EUR was up by 0.02% to $1.1244.

For the Pound

It’s also a relatively busy day ahead on the economic calendar. Finalized 1st quarter GDP and business investment numbers are due out. Barring a material upward revision to prelims, the stats should have a muted impact on the Pound.

On the monetary policy front, MPC members Haldane and Cunliffe are due to speak later, which will draw attention.

Expect updates from Brexit talks and market risk sentiment to be the key drivers on the day.

At the time of writing, the Pound was up by 0.07% to $1.2307.

Across the Pond

It’s a relatively busy day on the U.S economic calendar. Key stats include June’s Chicago PMI and consumer confidence figures, with April house prices figures also due out.

We would expect the CB Consumer Confidence Figures to have the greatest influence. In June, while lockdown measures eased, protests over the unlawful killing of George Floyd swept across the country.

For the U.S economy, a bounce-back in consumer confidence and spending is a must. Last week’s pause by a number of U.S states in reopening may limit the effects of any positive numbers, however.

Trump and COVID-19 news will also need monitoring throughout the day…

At the time of writing, the Dollar Spot Index was down by 0.06% to 97.477.

For the Loonie

It’s a relatively busy day ahead on the calendar. Key stats include April GDP figures, which will likely be brushed aside by the markets.

The focus will remain on geopolitics, COVID-19, and OPEC+ production plans.

At the time of writing, the Loonie was down by 0.01% to C$1.3661 against the U.S Dollar.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.