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Economic Data Puts the Pound and the Greenback in the Spotlight

Bob Mason
·3-min read

Earlier in the Day:

It was a busier start to the day on the economic calendar this morning. The Aussie Dollar was in action in the early hours. Later this morning, finalized industrial production figures are also due out of Japan. Barring a marked revision from prelim figures, however, we don’t expect the production numbers to influence.

For the Aussie Dollar

House prices and business confidence were in focus this morning.

In the 2nd quarter, house prices were up 6.7%, quarter-on-quarter versus a forecasted 6.0% increase. House prices had risen by 5.4% in the previous quarter.

Of greater significance, however, were business confidence figures.

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In August, the NAB Business Confidence Index increased from -8 to -5.

According to the August Survey,

  • Business conditions rose by 4 points to +14 after having seen marked declines for 2 consecutive months.

  • In spite of the pickup in confidence, the confidence index remained in the deep red, highlighting the economic uncertainty stemming from lockdown measures.

  • While confidence and conditions have taken a hit, current levels remain well above those seen back in 2020, however.

The Aussie Dollar moved from $0.73682 to $0.73638 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.06% to $0.73635.

Elsewhere

At the time of writing, the Japanese Yen was down by 0.06% to ¥110.060 against the U.S Dollar, with the Kiwi Dollar down by 0.03% to $0.7117.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Finalized August inflation figures for Spain are due out later this morning.

Barring a marked upward revisions, however, we don’t expect the numbers to have a material impact on the EUR, however.

At the time of writing, the EUR was down by 0.03% to $1.1808.

For the Pound

It’s busy day ahead on the economic calendar. Average earnings, claimant counts, and unemployment figures will be in focus.

With the BoE in action next week, expect plenty of interest in the claimant counts and the unemployment rate.

At the time of writing, the Pound was up by 0.03% to $1.3842.

Across the Pond

It’s a relatively busy day ahead. August inflation figures are due out later today. With the FED seeing inflationary pressures as transitory, another spike would give the hawks the upper hand and the Dollar a nudge northwards.

Economists have forecast for the annual rate of core inflation to soften from 4.3% to 4.2%.

At the time of writing, the U.S Dollar Spot Index was up by 0.10% to 92.675.

For the Loonie

It’s a relatively quiet day ahead for the Loonie.

Manufacturing sales figures for July are due out later today. With little else for the markets to consider, we can expect some influence from the numbers, though the impact is unlikely to be long-lasting.

Market risk sentiment and crude oil prices will remain key as uncertainty over the economic recovery remains…

At the time of writing, the Loonie was down by 0.02% to C$1.2651 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

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