It's a busy day ahead. Geopolitics, the BoC and service sector activity will keep the markets busy on the day ahead...
It was a busy day on the economic calendar through the Asian session this morning.
The Aussie Dollar was in action once more, with 3rd quarter GDP numbers and service sector PMI numbers out of China providing direction.
Economic data out of Japan was also in focus, with finalized November service sector PMIs released early in the day.
On the geopolitical front, the markets reacted further to Trump’s latest tariff tirades. The U.S President spoke on Tuesday, saying that he may want to hold off on a China deal until after the Presidential Election…
Quarter-on-quarter, the economy grew by 0.4% in the 3rd quarter, falling short of a forecast and 2nd quarter growth of 0.5%. Year-on-year, the economy grew by 1.7%, which was also in line with forecast, whilst accelerating from 1.5% growth in the 2nd quarter.
According to the ABS,
The Aussie Dollar moved from $0.68472 to $0.68408 upon release of the figures. At the time of writing, the Aussie Dollar down by 0.15% to $0.6837.
The November Service sector PMI stood at 50.3 according to finalized figures, which was down from a prelim 50.4, while up from 49.7 in October.
According to the November Markit Report,
The Japanese Yen moved from ¥108.621 to ¥108.602 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.06% to ¥108.57 against the U.S Dollar.
The Caixin Service Sector PMI rose from 51.1 to a 7-month high 53.5 in November. Economists had forecast a rise to 51.2.
According to the November Service PMI report,
The Aussie Dollar moved from $0.68355 to $0.68367 upon release of the figures.
At the time of writing, the Kiwi Dollar was down by 0.06% to $0.6516.
It’s a busy day ahead on the economic calendar. Key stats include Spanish and Italian service sector PMI numbers for November. Finalized PMI numbers are also due out of France, Germany, and the Eurozone.
Barring material deviation from prelims for French and German numbers, the focus will likely be on the Eurozone composite.
Outside of the stats, with just over a week to go before the UK General Election, there could be greater EUR interest in the polls.
Any chatter on trade would trump UK election talk, however, as the U.S targets France.
At the time of writing, the EUR was down by 0.01% to $1.1081.
It’s a relatively busy day on the data front. Finalized November Service and Composite PMI numbers are due out. Following dire prelim numbers, an upward revision would provide support.
Any upside may be short-lived, however, with UK politics continuing to be the driving force ahead of next week’s election.
At the time of writing, the Pound was up by 0.02% to $1.2998.
It’s a busy day on the economic calendar. The ADP’s nonfarm employment change figures are due out along with the market’s preferred ISM Non-Manufacturing PMI.
We can expect the stats to have plenty of influence on the day.
Finalized Markit PMI figures will have less influence, however, barring a material revision from prelim numbers.
While the stats will provide direction ahead of next week’s final policy decision of the year, geopolitics will likely remain the key driver.
At the time of writing, the Dollar Spot Index was down 0.01% at 97.732.
It’s a big day on the economic calendar, with the Bank of Canada in action later today. Following last week’s 3rd quarter GDP numbers, it remains to be seen whether the Committee will deliver a more dovish message.
While BoC Governor Poloz had suggested interest rates were at the right level recently, the BoC had taken a more cautious tone at the last gathering.
That was before last week’s GDP numbers…
Ahead of the policy decision, the Loonie will likely brush aside 3rd quarter labor productivity figures for.
The Loonie was up by 0.06% to C$1.3288, against the U.S Dollar, at the time of writing.
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.