The Pound makes an early move, with economic data from the Eurozone in focus later today.
Earlier in the Day:
It’s was a relatively quiet start to the week on the economic calendar this morning, with the China and Hong Kong markets closed. Going into the Asian open, the Japanese Yen was in action, however.
Later this morning, finalized industrial production figures from Japan are also due out. We don’t expect too much influence from the numbers, however.
For the Japanese Yen
4th quarter GDP numbers were in focus this morning.
Quarter-on-quarter, the Japanese economy expanded by 3.0%, following 5.3% growth in the 3rd quarter. Economists had forecast the economy to expand by 2.3%.
Year-on-year, the economy expanded by 12.7% following the 3rd quarter’s 22.9% rebound. Economists had forecast growth of 9.5%.
- GDP capital expenditures rebounded in the 4th quarter, rising by 4.5%. Economists had forecast a 2.6% increase following a 2.4% slide in the 3rd
- External demand saw a more modest 1.0% rise, following a 2.7% increase in the 3rd
- Private consumption also saw a more modest 2.2% increase. In the 3rd quarter, private consumption had risen by 5.1%.
The Japanese Yen moved from ¥105.045 to ¥105.039 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.10% to ¥105.04 against the U.S Dollar
At the time of writing, the Aussie Dollar was up by 0.03% to $0.7763, while the Kiwi Dollar was down by 0.01% to $0.7222. News of Auckland going into lockdown pegged the Kiwi back early on.Advertisement
The Day Ahead:
For the EUR
It’s a relatively busy day ahead on the economic calendar.
Key stats include December industrial production and trade data for the Eurozone. Following some disappointing industrial production figures from member states, we can expect plenty of interest in the numbers.
Trade data will need to provide support, however, as the Eurozone continues to struggle amidst containment measures.
At the time of writing, the EUR was up by 0.02% to $1.2122.
For the Pound
It’s a 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 the Pound in the hands of market risk sentiment and vaccination news on the day. Progress on the vaccination front has fueled hopes of an early end to lockdown measures, driving Pound support.
At the time of writing, the Pound was up by 0.20% to $1.3877.
Across the Pond
There are no material stats due out of the U.S, with the U.S markets closed for President’s Day.
At the time of writing, the Dollar Spot Index was down by 0.04% to 90.441.
For the Loonie
It’s also a quiet day on the economic data front, with the Canadian markets closed for Family Day.
The lack of stats will leave the Loonie in the hands of crude oil prices on the day.
At the time of writing, the Loonie was up by 0.08% to C$1.2686 against the U.S Dollar.