The ECB and Economic Data Put the EUR and the USD in the Spotlight

Earlier in the Day:

It was a busier start to the Asian session. The Japanese Yen and the Aussie Dollar were in action in the early hours of the day. Going into the Asian open, the markets also responded to the FOMC meeting minutes from overnight.

For the Japanese Yen

In January, Japan’s trade deficit widened from ¥583.3bn to ¥2,191.1bn. According to figures released by the  Ministry of Finance,

• Exports increased by 9.6% year-on-year.
  • Exports to China fell by 5.4%, while exports to the U.S were up 11.5%.
• Imports surged by 39.6%, however, leading to the widening of the trade deficit.
  • Imports from China increased by 23.7%, with imports from the U.S up 33.4% year-on-year.

The Japanese Yen moved from ¥115.371 to ¥115.339 in response to the trade data. At the time of writing, the Japanese Yen was up by 0.03% to ¥115.490 against the U.S Dollar.

For the Aussie Dollar

Employment figures for January drew plenty of interest this morning. In January, employment rose by 12.9k, leaving the unemployment rate unchanged at 4.2%. Economists had forecast a 15k fall in employment and for the unemployment rate to hold steady.

According to the ABS,

• Full employment fell by 17k, partially reversing a 41.5k increase from December.
• Compared with March 2020, the number of unemployed was 143,200 lower.
• The participation rate increased by 1 point to 66.2%.

The Aussie Dollar moved from $0.72069 to $0.72061 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.03% to $0.7197.

Elsewhere

At the time of writing, the Kiwi Dollar was up by 0.13% to $0.6688.

The Day Ahead

For the EUR

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.

While there are no stats to consider, the ECB Economic Bulletin and ECB member chatter will draw interest. ECB member Lane is scheduled to speak late in the day.

At the time of writing, the EUR was up by 0.03% to $1.1376.

For the Pound

It’s also a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction. The lack of stats will leave market sentiment towards BoE monetary policy to provide Pound support.

At the time of writing, the Pound was down by 0.02% to $1.3583.

Across the Pond

Jobless claims and Philly FED Manufacturing numbers will be in focus. Barring dire manufacturing numbers, expect the jobless claims figures to be key.

Other stats on the day include housing sector data that should have a muted impact on the Dollar.

At the time of writing, the U.S Dollar Spot Index was up by 0.10% to 95.793.

For the Loonie

There are no major stats due out of Canada to provide the Loonie with direction. The lack of stats will leave the Loonie in the hands of market risk sentiment and crude oil prices on the day.

At the time of writing, the Loonie was down by 0.09% to C$1.2699 against the U.S Dollar.

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