Economic Data Puts the Pound and the Dollar in the Spotlight, with COVID-19 News also in Focus

by Warrior2

A busier economic calendar puts the Pound and the Dollar in focus. Expect COVID-19 news, chatter from Capitol Hill, and Italian politics to also influence, however.

Earlier in the Day:

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

For the Aussie Dollar

Homes loans jumped by 5.5% in November, following a 0.8% rise in October. Economists had forecast a 0.5% increase.

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According to the ABS,

  • The total value of new loan commitments for housing and the value of owner occupier home loan commitments hit record highs in November 2020.
  • Year-on-year, the value of new owner home loan commitments was 31.4% higher.

The Aussie Dollar moved from $0.77855 to $0.77792 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.04% to $0.7775.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.06% to ¥103.74 against the U.S Dollar, with the Kiwi Dollar up by 0.07% to $0.7216.Advertisement

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. November trade data for the Eurozone is due out later today.

Finalized December inflation figures for France and Spain are also due out but should have a muted impact on the EUR.

Away from the economic calendar, expect COVID-19 news to continue to influence sentiment towards the economic outlook.

At the time of writing, the EUR was down by 0.02% to $1.2153.

For the Pound

It’s a busy day ahead on the economic calendar. Key stats include industrial and manufacturing production and GDP figures for November.

Trade data is also due out but will likely have a muted impact on the Pound.

Away from the economic calendar, any COVID-19 vaccination news will also provide direction.

At the time of writing, the Pound was down by 0.01% to $1.3688.

Across the Pond

It’s a particularly busy day ahead on the economic calendar. Key stats include December retail sales and industrial production figures and prelim January consumer sentiment numbers.

Expect consumer sentiment and retail sales figures to have the greatest impact on market risk sentiment.

NY Empire State Manufacturing, wholesale inflation, and business inventory figures are also due out. We would expect these to have a muted impact on the Dollar and market risk sentiment, however.

Away from the economic calendar, expect chatter from Capitol Hill to remain a key driver.

At the time of writing, the Dollar Spot Index was up by 0.02% to 90.256.

For the Loonie

It’s another quiet day on the economic data front, with no material stats due out to provide the markets with direction.

The lack of stats will leave the Loonie in the hands of market risk sentiment on the day.

At the time of writing, the Loonie was down by 0.03% to C$1.2644 against the U.S Dollar.

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