The BoE, Capitol Hill, and U.S Stats Put the Pound and the Dollar in Focus

Earlier in the Day:

It’s was another busy start to the day on the economic calendar this morning. The Aussie Dollar and the Kiwi Dollar were in action in the early part of the day.

For the Kiwi Dollar

3^rd quarter GDP figures were in focus in the early part of the day.

In the 3^rd quarter, the New Zealand economy expanded by 14.00%, reversing an 11.00% contraction from the 2^nd quarter. Economists had forecast the economy to grow by 13.5%, quarter-on-quarter.

According to NZ Stats,

• Service Industries expanded by 11.1%, with goods-producing industries expanding by 26.0%.
• Across the services sector, the retail, accommodation, and restaurants category was the main driver, surging by 42.8%.
• Primary industries were by a more modest 4.6%, however.
• The annual GDP declined in the year to September 2020 by 2.2%, however.
• In spite of the rebound, the effects of the COVID-19 were still apparent at varying levels across different industries.

The Kiwi Dollar moved from $0.71039 to $0.71109 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.30% to $0.7133.

For the Aussie Dollar

Employment figures were in focus.

According to the ABS,

• Employment rose by 90.0k in November, following a 178.8k jump in October. Economists had forecast a 50.0k rise.
• Total employment rose by 82.4k, following a 97.0k increase in October.
• The unemployment rate fell from 7.0% to 6.8%, whilst the participation rate rose from 65.8% to 66.1%. Economists had forecast an unemployment rate of 7.0% and a participation rate of 66.0%.

The Aussie Dollar moved from $0.75719 to $0.75782 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.05% to $0.7581.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.07% to ¥103.40 against the U.S Dollar, while

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Finalized November inflation figures for the Eurozone are due out later today.

Barring any marked revisions to prelim figures, however, the numbers are unlikely to influence.

Expect COVID-19 news and any updates from Brexit talks and U.S stimulus talks to remain key drivers.

At the time of writing, the EUR was up by 0.02% to $1.2203.

For the Pound

It’s a busy day ahead on the economic calendar. While there are no material stats due out to provide the Pound with direction, the Bank of England is in action later today.

With Brexit negotiations ongoing and COVID-19 vaccinations being administered, the BoE may want to hold off on any moves.

Expect forward guidance and any dissent to influence.

Away from the economic calendar, however, Brexit chatter will also remain the key driver.

At the time of writing, the Pound was up by 0.10% to $1.3523.

Across the Pond

It’s a busy day ahead on the economic calendar. November building permits and housing starts are due out along with December Philly FED Manufacturing numbers. The key driver, however, will be the weekly jobless claims figures.

Away from the economic calendar, however, updates from stimulus talks on Capitol Hill will continue influence.

At the time of writing, the Dollar Spot Index was down by 0.31% to 90.170. Progress towards a stimulus packing and market reaction to the FED sank the Dollar early on.

For the Loonie

It’s a particularly quiet day ahead on the economic data front. There are no material stats to provide the Loonie with direction.

The lack of stats will leave COVID-19 news and stimulus talks on Capitol Hill in the spotlight.

At the time of writing, the Loonie was up by 0.04% to C$1.2738 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.