Manufacturing PMIs and U.S Politics to Put the EUR and the Greenback in Focus

Earlier in the Day:

It’s was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen was in action, with economic data from China also in focus.

For the Japanese Yen

In December, the finalized manufacturing PMI came in at 50.0. Rising from a prelim 49.7 and November’s 49.0.

According to the December Markit survey,

• The move through to 50.0 at the end of the year brought to an end a run of 19 consecutive months of decline.
• Manufacturers reported that production volumes were unchanged on the month for the first time in 2-years. This ended a run of 23 consecutive monthly declines in output.
• As a result of more stable conditions, manufacturers increased hiring for the first time in 10-months.
• On the negative, however, were new orders that were reduced to the least marked extent of the past 2-years.

The Japanese Yen moved from ¥103.113 to ¥103.045 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.13% to ¥103.07 against the U.S Dollar.

From China

Private sector PMIs were back in focus this morning.

In December, the Caixin Manufacturing PMI fell from 54.9 to 53.0. Economists had forecast a decline to 54.8.

According to the December survey,

• While the manufacturing sector continued to expand, the rate of expansion was the softest for 3-months.
• The pace of expansions in both output and total new work remained steep, though slower on the month.
• Export sales rose modestly, with firms taking a more cautious approach to hiring, leaving employment levels unchanged.
• Optimism slipped to a 3-month low, while companies remained optimistic that output would increase over the next year.

The Aussie Dollar moved from $0.77112 to $0.77146 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.30% to $0.7717.

Elsewhere

At the time of writing, the Kiwi Dollar was up by 0.18% to $0.7201. New Zealand is on holiday at the start of the week.

The Day Ahead:

For the EUR

It’s a particularly busy day ahead on the economic calendar. December manufacturing PMI numbers for Italy and Spain are due out later this morning. Finalized PMIs for France, Germany, and the Eurozone are also due out.

Barring a marked revision to prelim figures, Italy and the Eurozone’s PMI numbers will likely have the greatest influence.

Away from the economic calendar, COVID-19 news will also provide direction.

At the time of writing, the EUR was up by 0.32% to $1.2254.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. Finalized manufacturing PMI figures for December are due out later today.

Barring a marked revision to prelim figures, however, the numbers are unlikely to have a material impact on the Pound.

Progress on the COVID-19 vaccine front and post-Brexit updates will provide direction on the day.

At the time of writing, the Pound was up by 0.10% to $1.3686.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar. Finalized manufacturing PMI figures are due out later today.

The numbers are unlikely to have a material impact on the Dollar, however.

Expect chatter from Capitol Hill and updates on COVID-19 to continue to drive the Greenback. Key in the early part of the week is the Senate race, with Georgia’s runoff tomorrow

For the Loonie

It’s a quiet day on the economic data front. There are no material stats due out to provide the Loonie with direction.

The lack of stats will leave the Loonie in the hands of the private sector PMI numbers from China and COVID-19 news.

At the time of writing, the Loonie was up by 0.17% to C$1.2707 against the U.S Dollar.

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