The Economic Calendar and UK Parliament Will Keep the Markets Busy

Earlier in the Day:

It was a relatively quiet day on the Asian economic calendar in the earlier hours of this morning.

The Japanese Yen was in action earlier in the day. The Chinese Yuan and the Aussie Dollar, by proxy, are in action shortly.

For the Japanese Yen

Japan’s annual rate of core inflation picked up from 0.4% to 0.5% in November according to figures released by the Ministry of Internal Affairs and Communication. Economists had forecast a core inflation rate of 0.4%. The annual rate of inflation also came in at 0.5%, picking up from 0.2% in October.

The Japanese Yen moved from ¥109.371 to ¥109.402 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.02% to ¥109.35 against the U.S Dollar.

For the Chinese Yuan

The PBoC is scheduled to announce its December Loan Prime Rates later this morning.

While the Aussie Dollar found support following a cut in rates last time around, it remains to be seen whether the PBoC will hold back.

Economic data this week was more upbeat, with a phase 1 U.S – China trade agreement also positive. A need to support ahead of the Chinese New Year could play a hand in today’s decision, however.

Either way, expect an Aussie Dollar reaction.

At the time of writing, the Aussie Dollar was up by 0.10% to $0.6893.

Elsewhere

At the time of writing, the Kiwi Dollar up by 0.08% to $0.6612.

The Day Ahead:

For the EUR

It’s a busy day ahead on the economic calendar. Key stats due out of the Eurozone include German and Eurozone consumer confidence and French consumer spending figures.

We would expect the Eurozone’s consumer confidence figures, due out late in the session, to have the greatest impact.

On the geopolitical risk front, the UK Parliament will be thrashing out Boris Johnson’s Brexit Bill amendments following Thursday’s Queen’s speech. Parliament will also be voting on whether to leave the EU on 31^st January…

At the time of writing, the EUR was flat at $1.1122.

For the Pound

It’s a relatively busy day ahead on the economic calendar. Key stats include finalized 3^rd quarter GDP and business investment figures.

Barring any deviation, the stats will likely have a muted impact on the Pound.

Chatter from Parliament will continue to drive the Pound on the day.

With Parliament expected to vote on whether to leave the EU on 31^st January, the markets will get a sense of just how unified the Tories are on Brexit. If unified, expect the chatter of a hard Brexit resume…

It will be Boris Johnson’s first Parliamentary vote with a majority.

At the time of writing, the Pound was up by 0.01% to $1.3010.

Across the Pond

It’s a busy day on the data front. Finalized 3^rd quarter GDP numbers, the FED’s preferred inflation figures, personal spending and consumer sentiment figures are due out.

Barring a deviation from previous estimates, the GDP numbers will likely be brushed aside by the Dollar.

Expect consumer sentiment and personal spending to have the greatest influence…

On the geopolitical front, there’s also Trump’s impeachment and Brexit to factor in… While the markets have brushed aside only the 3^rd impeachment in history, Brexit woes could drive demand for the Dollar later today.

At the time of writing, the Dollar Spot Index ended Thursday down by 0.02% to 97.379.

For the Loonie

It’s a relatively busy day on the economic calendar. October retail sales and new housing price figures are due out later today.

Expect retail sales to have a material influence on the Loonie later today.

The Loonie was down by 0.02% to C$1.3127 against the U.S Dollar, at the time of writing.