Particularly weak economic data weighed on the risk appetite early on, with a busy day of stats likely to test the markets further in the day.
It was a busy day on the economic calendar through the Asian session this morning.
Key stats were included 3rd quarter GDP numbers out of Japan and October employment numbers out of Australia. Out of China, industrial production figures also influenced risk appetite in the early part of the day.
Outside of the numbers, the markets also reacted to FED Chair Powell’s testimony to Congress late on Wednesday.
The economy grew by 0.1% in the 3rd quarter, quarter-on-quarter, falling short of a forecast of 0.2%. In the 2nd quarter, the economy had grown by 0.4%.
According to the cabinet office,
The Japanese Yen moved from ¥108.801 to ¥108.778 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.04% to ¥108.78 against the U.S Dollar, while
According to the ABS,
The Aussie Dollar moved from $0.68365 to $0.68048 upon release of the figures that preceded stats out of China. At the time of writing, the Aussie Dollar was down 0.54% to $0.6801.
In October, industrial production rose by 4.7%, year-on-year, falling well short of a forecasted 5.4% increase. Industrial production had risen by 5.8% in September.
Fixed asset investments rose by 5.2%, year-on-year, also falling short of a forecasted 5.4% rise. In September, fixed asset investments had risen by 5.4%.
Adding to the doom and gloom were retail sales, which rose by 7.2%, year-on-year, coming up short of a forecasted 7.9% rise. In September, retail sales had risen by 7.8%.
Out of China, the only positive was a fall in the unemployment rate from 5.2% to 5.1%, which was of little consolation.
The Aussie Dollar moved from $0.68073 to $0.67978 upon release of the figures.
At the time of writing, the Kiwi Dollar was down by 0.25% to $0.6395.
It’s a busy day ahead on the economic calendar. Key stats due out of the Eurozone include Germany’s 1st estimate GDP numbers for the 3rd quarter and the Eurozone’s 2nd estimate numbers.
Finalized October inflation figures are also due out of France and Spain that will likely have a muted impact on the EUR.
Expect Germany’s quarterly GDP number to have the greatest influence, with the German economy expected to contract in the 3rd quarter.
Outside of the numbers, Powell’s second day of testimony and any chatter on trade will also influence.
At the time of writing, the EUR was down by 0.04% to $1.1003.
It’s yet another busy day ahead on the data front. Key stats include October retail sales figures that will influence the Pound.
Disappointing numbers would fuel further speculation of a near-term BoE rate cut.
The Pound has stood up against quite dire data this week, supported by the general election opinion polls. It’s unlikely that the Pound would be able to stomach dire numbers today, however.
At the time of writing, the Pound was down by 0.05% to $1.2845.
It’s a relatively quiet day on the economic calendar. Economic data out of the U.S include October wholesale inflation figures.
We can expect Dollar sensitivity to the numbers ahead of FED Chair Powell’s second day of testimony.
On the geopolitical front, updates on trade talks between the U.S and China will also influence on the day.
The Dollar Spot Index was down by 0.01% to 98.362 at the time of writing.
It’s a relatively quiet day on the economic calendar. September house price figures are due out later today.
Barring particularly dire numbers, however, we would expect the numbers to have a muted impact on the Loonie.
Market risk appetite and OPEC’s monthly report will provide direction through the day.
Crude oil prices bounced back on Wednesday, supported by OPEC’s more positive outlook on supply and demand.
The Loonie was down by 0.04% to C$1.3256, 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.