A quiet day on the economic data front puts the Bank of Canada and the Loonie in the spotlight. Brexit chatter will also drive the Pound...
It’s was a relatively busy start to the day on the economic calendar this morning. The Aussie Dollar was in action, with economic data from China also in focus.
The Westpac Consumer Sentiment Index jumped by 18% to 93.8 in September. In August, the index had fallen by 9.5% to 79.5.
According to the latest Westpac Report,
Looking at the sub-indexes:
The Aussie Dollar moved from $0.72148 to $0.72195 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.04% to $0.72165.
Inflation figures for August were in focus this morning.
In August, consumer prices rose by 0.4%, month-on-month, following a 0.6% rise in July. Economists had forecast a 0.4% increase.
The annual rate of inflation eased from 2.7% to 2.0% in August.
Wholesale deflationary pressures also eased, however. In August, the producer price index fell by 2.0%, year-on-year, following a 2.4% decline in July. Economists had forecast a 2.0% drop.
The Aussie Dollar moved from $0.72144 to $0.72172 upon release of the figures
At the time of writing, the Japanese Yen was up by 0.10% ¥105.92 against the U.S Dollar, with the Kiwi Dollar up by 0.01% to $0.6620.
It’s a quiet day ahead on the economic calendar. There are no material stats to provide the EUR with direction on the day.
A lack of stats will leave the ECB in focus, with the markets expecting some chatter to offset Dollar weakness.
We would expect market risk sentiment to also influence on the day, however.
At the time of writing, the EUR was down by 0.03% to $1.1775.
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.
That leaves the Pound firmly in the hands of Brexit chatter that has been negative for the Pound this week.
At the time of writing, the Pound was down by 0.15% to $1.2963.
It’s a busier day ahead for the U.S Dollar, with July’s JOLTs job openings due out later today.
Following the recent labor market numbers, the July figures will need to continue to support a positive outlook on the labor market.
Cracks in the economic recovery have begun to form, driving the FED into a more defensive position. Weak numbers would likely weigh on riskier assets.
The Dollar Spot Index was up by 0.08% to 93.522 at the time of writing.
It’s a big day ahead. While economic data is limited to August housing starts, the BoC monetary policy decision will draw plenty of attention.
First up since the FED’s new monetary policy framework rollout, the BoC could lay the groundwork for other Central Banks.
The last thing the BoC needs is a rampaging Loonie amidst the economic recovery from the COVID-19 pandemic.
At the time of writing, the Loonie was flat at C$1.3236 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
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.