Earlier in the Day:
It was a quiet start to the week on the economic calendar this morning. There were no material stats through the Asian session to provide the markets with direction.
A lack of stats left the majors in the hands of the news wires and the latest coronavirus numbers that weighed on riskier assets.
At the time of writing, the total number of U.S cases stood at 142,070. For Italy, Spain, Germany, and France, the combined number of cases stood at 280,408. The total global number of cases stood at 722,088.
The Day Ahead:
For the EUR
It’s a relatively quiet day on the economic calendar. Key stats include prelim March inflation figures for Spain and Germany and finalized Eurozone consumer confidence figures.
With the ECB having already downwardly revised inflation projections for 2020, today’s figures would need to be quite dire to influence.
We would expect the markets to also brush aside the finalized consumer confidence figures on the day.
Market sentiment towards the continued spread of the virus across the Eurozone and chatter from member states will be in focus, however.
At the time of writing, the EUR was down by 0.43% at $1.1093, with the surge in coronavirus cases weighing early on.
For the Pound
It’s a quiet day ahead on the economic calendar, with no material stats due out of the UK to provide the Pound with direction.
A lack of stats continues to leave the Pound susceptible to a tumble as the number of new cases saw a marked increase in recent days.
Away from the updates on the coronavirus, we can also expect some movement in response to the resumption of Brexit talks.
Negotiations are due to resume today and fisheries will likely be one of the main topics of discussion. The British government has stood firm on this, suggesting some tough talk ahead that could also pressure the Pound.
At the time of writing, the Pound was down by 0.63% to $1.2381.
Across the Pond
It’s a relatively quiet day ahead on the U.S economic calendar. February pending home sales are due out later today.
Barring particularly dire numbers we are not expecting too much influence, with March and April numbers of greater relevance. With the U.S in shutdown mode, the effect on the housing market is expected to be negative, which would be another blow for the U.S economy.
With data on the lighter side, the focus will remain on the coronavirus and chatter from Capitol Hill.
The Dollar Spot Index was up by 0.27% to 98.631 at the time of writing.
For the Loonie
It’s a quiet day ahead on the economic calendar, with no material stats due out later today to provide direction.
Crude oil prices and risk appetite will remain the key driver for the Loonie following last week’s BoC move.
The sharp rise in coronavirus cases has raised some doubts over whether fiscal and monetary policy moves will be enough. Governments will likely need to take more stringent containment measures that would have a more negative impact on the respective economies. It would also lead to a lengthier slump in consumption and, therefore, demand for oil and other commodities.
The Loonie was down by 0.47% at C$1.4051 against the U.S Dollar, at the time of writing.
This article was originally posted on FX Empire
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