Private Sector PMIs and Brexit to Drive the EUR, the Dollar, and the PoundIt is a busy day ahead. Economic data and geopolitics will keep the markets busy.
Earlier in the Day:
It’s was a relatively busy start to the day on the economic calendar this morning. The Aussie Dollar and the Japanese Yen were in action this morning.
For the Japanese Yen
3rd quarter Tankan survey figures were in focus early this morning.
- All Big Industry CAPEX Index increased by 1.4%, following a 3.2% rise in the 2nd Economist had forecast a 1.3% gain.
- Big Manufacturing Outlook Index rose from -27 to -17, which was in line with forecasts.
- The Large Manufactures Index increased from -34 to -27. Economists had forecast a rise to -23.
- Large Non-Manufacturers Index increased from -17 to -12. Economists had forecast an increase to -9.
The Japanese Yen moved from ¥105.448 to ¥105.486 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.03% ¥105.51 against the U.S Dollar.
For the Aussie Dollar
The AIG Manufacturing Index fell from 49.3 to 46.7 in September. In August, the index had fallen from 53.5 to 49.3.
According to the September Survey,
- Stage 4 activity restrictions in response to COVID-19 in Victoria led to slower orders and new inquiries.
The Aussie Dollar moved from $0.71704 to $0.71695 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.07% to $0.7167.
At the time of writing, the Kiwi Dollar was up by 0.06% to $0.6621.
The Day Ahead:
For the EUR
It’s another busy day ahead on the economic calendar. Key stats include September manufacturing PMIs for Italy and Spain.
Finalized PMIs for France, Germany, and the Eurozone are also in focus. Barring revisions to prelim numbers, expect Italy and the Eurozone’s PMI to have the greatest impact.
Eurozone unemployment figures for August, also due out later in the day, should have a muted impact on the EUR.
Away from the economic calendar, expect Brexit to remain in focus as 3-days of talks come to a close today.
At the time of writing, the EUR was up by 0.02% to $1.1723.
For the Pound
It’s a relatively quiet day ahead on the economic calendar. Key stats include September’s finalized manufacturing PMI. Barring a material revision from prelim, however, the PMI should have a muted impact on the Pound.
Brexit will remain the key driver on the day. As the final round of Brexit talks come to a close, enough progress will need to have been made to bring more details negotiations into play. A lack of progress and it may well be a no-deal departure from the EU…
At the time of writing, the Pound was up by 0.06% to $1.2928.
Across the Pond
It’s a busy day ahead for the U.S Dollar. Key stats August inflation and personal spending figures, the weekly jobless claims, and ISM manufacturing PMI numbers.
Barring particularly dire personal spending and inflation figures, the focus will be on the weekly jobless claims and PMIs.
With September’s nonfarm payrolls due out tomorrow, the markets will be looking for a fall in the jobless claims.
On the geopolitical risk front, we are into the final month before the Presidential Election. Following yesterday’s first debate, expect plenty of chatter from Trump…
The Dollar Spot Index was down by 0.03% to 93.86 at the time of writing.
For the Loonie
It’s a quiet day ahead, economic data is limited to building permit figures for August that should have a muted impact.
The focus will be on the manufacturing PMIs from elsewhere, with any disappointing numbers likely to raise yet more red flags.
At the time of writing, the Loonie was up by 0.14% to C$1.3300 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.