Monetary Policy Puts the Loonie in the Spotlight, with the BoC in Action

Earlier in the Day:

It was a relatively quiet start to the day on the economic calendar this morning. The Japanese Yen was in action this morning.

For the Japanese Yen

2^nd estimate GDP numbers for the 2^nd quarter were in focus this morning.

Quarter-on-quarter, the economy grew by 0.5%, which was up from a prelim 0.3%. In the 1^st quarter, the economy had contracted by 0.90%.

Year-on-year, the economy expanded by 1.90%, which was up from a prelim 1.3%. In the 1^st quarter, the economy had contracted by 3.7%, year-on-year.

The Japanese Yen moved from ¥110.310 to ¥110.280 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.01% to ¥110.290 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was up by 0.14% to $0.7396, with the Kiwi Dollar up by 0.13% to $0.7108.

The Day Ahead

For the EUR

It’s a quiet day ahead on the economic data front.  French non-farm payrolls for the 2^nd quarter are due out ahead of the European open.

Barring dire numbers, however, we don’t expect the numbers to influence as the markets look ahead to the ECB policy decision on Thursday.

At the time of writing, the EUR was up by 0.06% to $1.1847.

For the Pound

It’s another 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 likely leave the Pound in the hands of market risk sentiment on the day.

At the time of writing, the Pound was down by 0.01% to $1.3784.

Across the Pond

It’s a relatively quiet day ahead on the economic data front. JOLT’s job openings for July are due out later today.

Following the disappointing NFP numbers for August, expect any weak numbers to further test Dollar support.

At the time of writing, the U.S Dollar Spot Index was down by 0.01% to 92.504.

For the Loonie

It’s a big day ahead for the Loonie.

While Ivey PMI figures for August will draw interest, the Bank of Canada monetary policy decision will be key late in the day.

The markets will be looking for the BoC’s outlook on growth, following the disappointing GDP numbers for Q2. Expect any hawkish chatter to give the Loonie a material boost on the day, with the markets expecting some dovish guidance.

At the time of writing, the Loonie was up by 0.11% to C$1.2633 against the U.S Dollar.

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