U.S. markets closed
  • S&P 500

    4,134.94
    -28.32 (-0.68%)
     
  • Dow 30

    33,821.30
    -256.33 (-0.75%)
     
  • Nasdaq

    13,786.27
    -128.50 (-0.92%)
     
  • Russell 2000

    2,188.21
    -43.79 (-1.96%)
     
  • Crude Oil

    62.61
    -0.77 (-1.21%)
     
  • Gold

    1,779.20
    +8.60 (+0.49%)
     
  • Silver

    25.88
    +0.04 (+0.15%)
     
  • EUR/USD

    1.2044
    +0.0003 (+0.02%)
     
  • 10-Yr Bond

    1.5620
    -0.0390 (-2.44%)
     
  • GBP/USD

    1.3935
    -0.0049 (-0.35%)
     
  • USD/JPY

    108.1000
    -0.0500 (-0.05%)
     
  • BTC-USD

    56,546.05
    +458.31 (+0.82%)
     
  • CMC Crypto 200

    1,281.58
    +47.16 (+3.82%)
     
  • FTSE 100

    6,859.87
    -140.21 (-2.00%)
     
  • Nikkei 225

    29,100.38
    -584.99 (-1.97%)
     

A Quiet Day Ahead on the Economic Calendar Leaves COVID-19 and Geopolitics in Focus

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Bob Mason
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Earlier in the Day:

It’s was a busy start to the day on the economic calendar this morning. The Japanese Yen, the Aussie Dollar, and the Kiwi Dollar were in action. There was also economic data from China to consider.

For the Japanese Yen

Industrial production and retail sales were in focus.

According to prelim figures, industrial production jumped by 8% in July, following on from a 1.9% increase in June. Economists had forecast a 5.8% rise.

According to the Ministry of Economy, Trade and Industry, retail sales fell by 2.8%, partially reversing a 3.9% rise from June. Economists had forecast a 1.7% decline.

The Japanese Yen moved from ¥105.512 to ¥105.334 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.17% ¥105.55 against the U.S Dollar

Out of China

NBS private sector PMIs for August were in focus in the early part of the day.

The manufacturing PMI slipped from 51.1 to 51.0, while the non-manufacturing PMI rose from 54.2 to 55.2.

The Aussie Dollar moved from $0.73559 to $0.73520 upon release of the figures.

For the Kiwi Dollar

The ANZ Business Confidence Index fell from -31.8% to -42.4% in August. In July, the index had risen from -34.4% to -31.8%.

According to the latest ANZ Report,

  • Also in decline was the own activity indicator that slipped by 8 points to -17%

  • A net 15% of firms also expect to reduce investment, with a net 32% expecting lower profits.

  • On the positive was capacity utilization, with the indicator rising by 5 points to -3%.

  • Near-term employment intentions fell by 6 points to a net 21% of firms expecting to cut jobs.

The Kiwi Dollar moved from $0.67371 to $0.67333 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.07% to $0.6738.

For the Aussie Dollar

Company gross operating profits and private sector credit figures were in focus.

In the 2nd quarter, company gross operating profits jumped by 15%. In the 1st quarter, profits had risen by 1.1%. Economists had forecast a 7.5% slide.

In July, private sector credit fell by 0.1% in July, following a 0.2% decline in June.

According to the RBA,

  • Housing credit rose by a further 0.2%, following a 0.2% increase in June.

  • Personal credit slumped by 1.8%, however, falling a 0.8% decline in June.

  • Business credit fell by 0.6%, following a 0.8% decline in June.

The Aussie Dollar moved from $0.73538 to $0.73592 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.04% to $0.7368.

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. Key stats include August’s prelim inflation figures for Germany, Italy, and Spain.

Barring particularly dire numbers, we are not expecting too much influence on the EUR.

The lack of influence will likely leave the EUR in the hands of geopolitics and COVID-19 news on the day.

At the time of writing, the EUR was up by 0.02% to $1.1905.

For the Pound

It’s a particularly quiet day ahead on the economic calendar, with the UK markets closed. There are no material stats to provide the Pound with direction.

A lack of stats will leave the Pound in the hands of market risk sentiment and Brexit chatter on the day.

At the time of writing, the Pound was down by 0.07% to $1.3344.

Across the Pond

It’s a quiet day ahead in a busy week for the U.S Dollar. There are no material stats due out of the U.S to provide the Dollar with direction.

A lack of stats will leave the Dollar in the hands of market risk sentiment and chatter from Washington.

U.S Presidential Election chatter will also likely begin to pick up in the week ahead. We can expect the markets to be responsive to the polls.

The Dollar Spot Index was down by 0.03% to 92.346 at the time of writing.

For the Loonie

It’s a relatively busy day ahead on the economic data front. Key stats include July building permits and RMPI numbers.

Away from the economic calendar, market sentiment towards the global economic outlook and demand for crude will also influence.

At the time of writing, the Loonie was up by 0.08% to C$1.3088 against the U.S Dollar.

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

This article was originally posted on FX Empire

More From FXEMPIRE: