Dollar Weakness Kicks in, with the Brexit Vote and Capitol Hill in Focus Today

by Warrior2

Earlier in the Day:

It’s was another particularly quiet start to the day on the economic calendar this morning. There were no material stats to provide the majors with direction

A lack of stats left the markets to respond to updates from Capitol Hill and COVID-19 news.

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The Majors

At the time of writing, the Aussie Dollar was up by 0.25% to $0.7625, with the Kiwi Dollar up by 28% to $0.7170. The Japanese Yen was up by 0.13% to ¥103.45 against the U.S Dollar.Advertisement

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Prelim December inflation figures for Spain are due out in the early part of the European session.

Barring a pickup in deflationary pressures, however, we don’t expect too much influence on the EUR.

The lack of stats will continue to leave the EUR in the hands of COVID-19 and Brexit news. Expect chatter from Capitol Hill to also influence. The Stimulus package remains a key area of focus.

At the time of writing, the EUR was up by 0.28% to $1.2283.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. Economic data is limited to December house price figures that will likely have a muted impact on the Pound.

The key driver on the day will be the House of Commons’ vote on the Brexit agreement.

At the time of writing, the Pound was up by 0.16% to $1.3524.

Across the Pond

It’s a busier day ahead on the economic calendar. November trade and home sales figures are due out along with Chicago’s PMI for December.

While the Chicago PMI will provide direction, we would expect the rest of the stats to have a limited impact on the Dollar.

Away from the economic calendar, COVID-19 and updates from Capitol Hill will remain key drivers.

At the time of writing, the Dollar Spot Index was down by 0.17% to 89.838.

For the Loonie

It’s another quiet day on the economic data front. There are no material stats due out, leaving the Loonie in the hands of crude oil inventory numbers.

Expect any progress towards a stimulus package on Capitol Hill to provide support, while any negative COVID-19 news would weigh.

At the time of writing, the Loonie was up by 0.08% to C$1.2808 against the U.S Dollar.

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