U.S Nonfarm Payrolls, Capitol Hill, and Brexit Put the Dollar and the Pound in Focus

Earlier in the Day:

It’s was a quieter start to the day on the economic calendar this morning. The Aussie Dollar was in action this morning.

For the Aussie Dollar

Retail sales were in focus. In August, retail sales slid by 4%, reversing a 3.2% rise in July. Economists had forecast a 4.2% decline.

According to the ABS,

• Food retailing fell by 0.2%, with the sales of liquor sliding by 2.9%.
  • Supermarket and grocery store sales and other specialized food retailing rose by 0.1% and by 0.5% respectively.
• Household goods retailing slid by 6.0%, with all of the major sub-categories reporting sharp declines
  • .Electrical and electronic goods retailing slumped by 7.7% to lead the way.
• Clothing, footwear, and personal accessory retailing tumbled by 10.5%.
  • Clothing retailing slid by 13.6%, with footwear and other personal accessory retailing falling by 3.8%.
• Things were no much better for café, restaurant, and takeaway food services (-6.6%), department store sales (-8.9%), and other retailing (-5.1%).

The Aussie Dollar moved from $0.71732 to $0.71690 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.29% to $0.7164

Elsewhere

At the time of writing, the Japanese Yen was down by 0.09% ¥105.62 against the U.S Dollar, with the Kiwi Dollar down by 0.12% to $0.6642.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Key stats included prelim September inflation figures for the Eurozone.

Following the market concerns over deflationary pressures and disappointing inflation data from member states, the EUR could come under pressure today.

Much will depend upon Brexit and other geopolitical issues and U.S labor market numbers later in the day. Any risk-off sentiment and the EUR could take a double hit should inflation figures disappoint.

At the time of writing, the EUR was down by 0.20% to $1.1725.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK.

The lack of stats will allow the markets to consider the updates from Brexit talks in Brussels.

We continue to see Brexit updates and COVID-19 numbers as the key drivers near-term.

At the time of writing, the Pound was down by 0.22% to $1.2863.

Across the Pond

It’s yet another busy day ahead for the U.S Dollar. Key stats include September’s nonfarm payroll and unemployment figures.

Wage growth, factory orders, and finalized consumer sentiment figures are also due out, though likely to have a muted impact…

Away from the economic calendar, geopolitics remains in focus. Presidential Election fever is on the rise… Then there’s Brexit, the relief Bill, and U.S China relations to also consider.

The Dollar Spot Index was up by 0.15% to 93.847 at the time of writing.

For the Loonie

It’s a quiet day ahead, with no economic data due out to provide the Loonie with direction.

Market risk sentiment will be the key driver on the day.

At the time of writing, the Loonie was down by 0.11% to C$1.3304 against the U.S Dollar.

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