It's a busy day ahead on the economic calendar, with services sector PMIs out of the Eurozone and the U.S and trade data out of Canada in focus.
It was a relatively busy day on the Asian economic calendar this morning. The Kiwi Dollar, the Japanese Yen, and Aussie Dollar, by proxy, were in action in the early part of the day.
Out of New Zealand, 4th quarter employment figures provided direction, with service sector PMI numbers out of China and Japan also in focus.
Employment held steady in the 4th quarter, following a 0.2% rise in the 3rd quarter. Economists had forecast a 0.3% increase. While there was no increase in employment, the unemployment rate fell from a revised 4.1% to 4.0% in the quarter. Economists had forecast the unemployment rate to hold steady in the quarter.
According to NZ Stats,
The Kiwi Dollar moved from $0.64902 to $0.64890 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.11% to $0.6483.
The finalized January Service PMI came in at 51.0, which was up from December’s 49.4, while down from a prelim 52.1.
According to the finalized survey,
The Japanese Yen moved from ¥109.39 to ¥109.405 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.04% to ¥109.48 against the U.S Dollar.
The Caixin Services PMI fell from 52.5 to 51.8 in January. Economists had forecast a rise to 52.6.
According to the January Survey,
The Aussie Dollar moved from $0.67326 to $0.67435 upon release of the data. At the time of writing, the Aussie Dollar was flat at $0.6739.
It’s a busy day ahead on the economic calendar. Key stats due out of the Eurozone include service sector PMI numbers out of Italy and Spain. Finalized PMIs are also due out of France, Germany, and the Eurozone along with Eurozone retail sales figures.
Barring revision to prelim numbers, the focus will likely be on the Eurozone composite and the Eurozone’s retail sales numbers.
At the time of writing, the EUR was down by 0.09% to $1.1034.
It’s a relatively quiet day ahead on the economic calendar. The UK’s finalized services PMI for January is due out later today.
Any upward revisions would provide further support to the Pound.
Outside of the numbers, expect the Pound to continue to face strong resistance over Brexit.
At the time of writing, the Pound was down by 0.12% to $1.3015.
It’s a relatively busy day ahead on the data front.
Key stats due out of the U.S include the market’s preferred ISM Non-Manufacturing PMI numbers for January and finalized Markit Service PMI figures.
The ADP’s nonfarm employment change numbers will also provide direction in the earlier part of the U.S session.
We would expect the ISM numbers to have the greatest impact on the day, however.
Outside of the numbers, expect Trump’s State of the Union Address to influence.
At the time of writing, the Dollar Spot Index was up by 0.06% to 98.014, as Trump delivers the State of the Union Address to Congress.
It’s a relatively quiet day ahead on the economic calendar. December trade data is due out of Canada later today.
After a quiet start to the week, we can expect the Loonie to be particularly sensitive to today’s numbers. The BoC has left the door ajar for a near-term rate cut.
Disappointing numbers would add further pressure on the Loonie as oil prices struggle.
The Loonie was down by 0.11% at C$1.3292 against the U.S Dollar, at the time of writing.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.