U.S Nonfarm Payrolls Puts the Greenback in the Spotlight

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen was in action in the early hours, with economic data from China also in focus later. On the monetary policy front, the RBA Financial Stability Review, due out later in the morning, will also garner plenty of interest.

For the Japanese Yen

Household spending slid by 3.9% in August, following on from a 0.90% decline in July. Economists had forecast a 2.0% decrease. Year-on-year, spending was down by 3.00% versus a forecasted 1.50% fall in August. In July, spending had risen by 0.70%.

According to the Statistic Bureau,

• Spending on clothing & footwear slumped by 11.5%, year-on-year, with spending on furniture & household utensils and medical care down by 9.0% and by 8.6% respectively.
• Culture & recreation (-3.9%), transportation & communication (-3.4%), and food (-3.2%) also saw marked declines in spending.
• Spending on education (+3.0%) and housing (+5.9%) were on the rise, however.

The Japanese Yen moved from ¥111.652 to ¥111.658 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.06% to ¥111.672 against the U.S Dollar.

From China

The Caixin Services PMI for September will be in focus later this morning. In August, the PMI had tumbled from 54.9 to 46.7…

Elsewhere

At the time of writing, the Aussie Dollar was down by 0.03% to $0.7310, while the Kiwi Dollar was up by 0.09% to $0.6931.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic calendar. The German economy is in focus once more, with trade data for August due out ahead of the open.

With little else to focus on and market concerns over growth persisting, expect the numbers to influence.

From the U.S, nonfarm payrolls will be the key stat of the day, however.

At the time of writing, the EUR was up by 0.04% to $1.1557.

For the Pound

It’s 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.

At the time of writing, the Pound was down by 0.03% to $1.3615.

Across the Pond

It’s a big day ahead, with September’s nonfarm payrolls due out.

A marked increase in hiring would spur another Dollar rally and put further pressure on the FED to make a move.

The U.S Dollar Spot Index fell by 0.05% on Thursday to end the day at 94.217.

For the Loonie

It’s a relatively busy day ahead for the Loonie. Employment figures for September are due out later today.

Expect the numbers to draw plenty of interest, though the impact on the Loonie will be muted against the Greenback, with the release coinciding with stats from the U.S.

At the time of writing, the Loonie was flat at C$1.2551 against the U.S Dollar.

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