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Economic Data Puts the EUR and Dollar in Focus, as Brexit Talks Resume

Bob Mason
·4-min read

Earlier in the Day:

It’s was a busier start to the day on the economic calendar this morning. The Japanese Yen was in action in the early part of the day.

For the Japanese Yen

September inflation figures were in focus this morning.

In September, Tokyo’s core consumer prices fell by 0.2%, year-on-year, following a 0.3% decline in August. Economists had forecast a 0.3% fall. Tokyo’s annual rate of inflation softened from 0.3% to 0.2%.

According to the Ministry of Internal Affairs and Communication,

  • Prices for education (-8.8%), culture & recreation (-2.2%), and fuel, light, & water charges (-2.0%) weighed.

  • There were marked increases in prices for clothes & footwear (+2.8%), furniture & household utensils (+2.6%).

  • Prices were also on the rise for transportation & communication (+0.9%), medical care (+0.8%), and housing (+0.7%).

The Japanese Yen moved from ¥105.498 to ¥105.476 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.04% ¥105.46 against the U.S Dollar.

For the Majors

At the time of writing, the Aussie Dollar was up by 0.13% to $0.7080, with the Kiwi Dollar up by 0.08% to $0.6559.

The Day Ahead:

For the EUR

It’s a busier day ahead on the economic calendar. Key stats include prelim September inflation figures for Germany and Spain.

Finalized Eurozone consumer confidence figures for September also due out but would likely have a muted impact on the EUR.

Away from the economic calendar, updates from the resumption of Brexit talks in Brussels will draw interest. COVID-19 numbers will also need tracking on the day.

At the time of writing, the EUR was up by 0.05% to $1.1672.

For the Pound

It’s yet another quiet day ahead on the economic calendar. There are no material stats due out to provide the Pound with direction.

The lack of stats will leave the Pound in the hands of Brexit and COVID-19 on the day.

3-days of Brexit talks commence later today and we can expect the news wires to influence the Pound. A lack of progress could bring an end to any hopes of more intense talks to iron out the remaining stumbling blocks.

For the Pound, COVID-19 also remains a driver. Any talk of more stringent containment measures and expect the Pound to suffer.

At the time of writing, the Pound was up by 0.16% to $1.2855. Early support kicked in, with the markets hoping for last-ditch compromises…

Across the Pond

It’s a busier day ahead for the U.S Dollar. July house price figures, August trade data, and September consumer confidence figures are due out.

Expect the consumer confidence numbers to be the key driver on the day.

Away from the calendar, chatter from Capitol Hill and Beijing will also need monitoring.

For U.S voters, it is the 1st presidential debate between Biden and Trump, which will garner plenty of interest late in the day.

The Dollar Spot Index was down by 0.07% to 94.215 at the time of writing.

For the Loonie

It’s a relatively quiet day ahead, with August’s RMPI in focus later today.

With a lack of stats in the early part of the week, expect the RMPI numbers to influence.

Away from the economic calendar, however, geopolitics and COVID-19 remain threats to the economic recovery.

Any further spike in new COVID-19 cases will test the Loonie, as will any friction between the U.S and China.

At the time of writing, the Loonie was down by 0.04% to C$1.3375 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