U.S GDP and Jobless Claims Put the USD Back in the Spotlight

Earlier in the Day:

It is a quiet start to the day on the economic calendar this morning. The Kiwi Dollar was in action in the early hours of this morning.

For the Kiwi Dollar

In the 4^th quarter, New Zealand’s annual rate of inflation accelerated from 4.9% to 5.9%. Economists had forecast a pickup to 5.7%.

Quarter-on-quarter, consumer prices rose by 1.4% versus a forecasted 1.3% increase. In the 3^rd quarter, consumer prices had risen by 2.2%.

According to NZ Stats,

• In the year, price increases were recorded in 10 out of the 11 main groups, with only the communications group declining.
• The housing and household utilities group was the main driver, with prices for construction of new dwellings up 16% year-on-year.
• Increased prices for petrol and second-hand cars also drove inflation higher. Petrol prices increased 30% year-on-year.

The Kiwi Dollar moved from $0.66515 to $0.66523 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.01% to $0.6653.

Elsewhere

At the time of writing, the Japanese Yen was down by 0.02% to  ¥114.660 against the U.S Dollar, while the Aussie Dollar was up by 0.04% to $0.7118.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Economic data is limited German consumer sentiment figures. Following the bounce back in private sector activity in January, the markets will expect a marked improvement in consumer sentiment.

At the time of writing, the EUR was up by 0.02% to $1.1242.

For the Pound

It’s another 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 direction.

On the political front, news updates from UK Parliament will also need monitoring.

At the time of writing, the Pound was down by 0.01% to $1.3462.

Across the Pond

It’s a relatively busy day ahead on the economic data front. Core durable goods, weekly jobless claims, and 4^th quarter GDP numbers are due out. Expect the GDP and jobless claims to be key.

On the monetary policy front, FOMC member chatter will also need monitoring on the day.

On Wednesday, the U.S Dollar Spot Index rose by 0.58% to end the day at 96.501.

For the Loonie

It’s a particularly quiet day ahead. There are no material stats due out of Canada to influence the Loonie. The lack of stats will leave the markets to respond further to the BoC’s policy decision and forward guidance from Wednesday.

At the time of writing, the Loonie was up by 0.03% to C$1.2666 against the U.S Dollar.

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