Earlier in the Day:
It’s was another busy start to the day on the economic calendar this morning. The Japanese Yen and the Aussie Dollar were in action, with economic data from China also of influence.
Away from the economic calendar, COVID-19 and the U.S stimulus package remained in focus ahead current unemployment benefits expiring today.
The markets were also able to react to particularly dire GDP numbers from Germany and the U.S and Trump’s tweet.
Looking at the latest coronavirus numbers
According to figures at the time of writing, the number of new coronavirus cases rose by 58,655 to 4,626,692 on Thursday. On Wednesday, the number of new cases had risen by 287,638. The daily increase was lower than Wednesday’s rise and down from 270,301 new cases from the previous Thursday.
Germany, Italy, and Spain reported 3,961 new cases on Thursday, which was up from 3,179 new cases on Wednesday. On the previous Thursday, 3,593 new cases had been reported.
From the U.S, the total number of cases rose by 58,655 to 4,626,692 on Thursday. On Wednesday, the total number of cases had increased by 69,828. On Thursday, 23rd July, a total of 69,116 new cases had been reported.
For the Japanese Yen
Industrial production rose by 2.70% in June, following an 8.9% slump in May. Economists had forecast a 1.2% rise.
According to the Ministry of Economy, Trade and Industry,
Industries that mainly contributed to the increase were:
- Motor vehicles, production machinery, and plastic products.
Industries that mainly contributed to the decrease were:
- Inorganic and organic chemicals, pulp, paper, and paper products, and other manufacturing.
Industrial production forecasts for July were also positive. Following a 9.2% jump in production forecasted back in June, production is now forecasted to surge by 11.3% in July. In August, production is forecast to rise by 3.4%.
The Japanese Yen moved from ¥104.698 to ¥104.597 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.37% to ¥104.34 against the U.S Dollar.
Out of China
In July, the NBS Manufacturing PMI rose from 50.90 to 51.1, while the Non-Manufacturing PMI slipped from 54.4 to 54.2.
Economists had forecast PMIs of 50.7 and 54.1 respectively.
The Aussie Dollar moved from $0.72039 to $0.72052 upon release of the figures.
For the Aussie Dollar
Producer Price Index and private sector credit figures were in focus early in the day.
According to the ABS,
- Final demand excluding exports fell by 1.2% in the 2nd quarter and by 0.4% over the past 12-months.
- Petroleum refining and petroleum fuel manufacturing (-30.1%), child care services (-36.7%), and other agri (-6.4%) weighed.
- There were increases in other transport equipment (+3.6%), computer and electronic equipment (+3.1%), and other motor vehicle and motor vehicle part manufacturing (+1.2%).
According to the RBA,
Total credit fell by 0.2% in June, following a 0.1% decline in May.
- Housing credit increased by 0.2%, following a 0.2% rise in May.
- Personal credit fell by 0.6%, following a 1.3% slide in May, with business credit falling by 0.8%. In May, business credit had fallen by 0.6%.
The Aussie Dollar moved from $0.72032 to $0.72169 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.29% to $0.72145.
At the time of writing, the Kiwi Dollar was down by 0.01% to $0.6698.
The Day Ahead:
For the EUR
It’s another busy day ahead on the economic calendar. Key stats include 2nd quarter GDP numbers from France, Spain, and the Eurozone that are scheduled for release. June’s consumer spending and retail sales figures for France and Germany will also draw attention.
Prelim June inflation figures for France, Italy, and the Eurozone, also due out but will likely have a muted impact.
Away from the economic calendar, the Dollar could crumble further should lawmakers fail to pass the stimulus package. An alternative would be an agreement to extend the current enhanced federal unemployment insurance policy.
At the time of writing, the EUR was up by 0.30% to $1.1882.
For the Pound
It’s yet another particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction.
A lack of stats will continue to leave the Pound in the hands of Brexit and the Dollar. The recent lack of economic data from the UK has allowed Dollar weakness to support a move back through to $1.31 levels.
At the time of writing, the Pound was up by 0.26% to $1.3130.
Across the Pond
It’s a busy day ahead for the U.S Dollar. June’s personal spending and inflation figures are key stats due out later today. Finalized consumer sentiment figures for July are also due out. Barring any material downward revision, however, it will likely be brushed aside.
Away from the calendar, the focus on the day will be on Capitol Hill. A failure by lawmakers to pass the stimulus package or to extend the current unemployment benefit would weigh.
We can also expect plenty of Trump tweets as COVID-19 numbers continue to rise across the U.S.
At the time of writing, the Dollar Spot Index was down by 0.31% to 92.731.
For the Loonie
It’s a relatively busy day ahead on the economic calendar. Key stats include May GDP and June RMPI figures.
Expect the GDP numbers to be the key driver on the day.
Away from the economic calendar, however, any further risk aversion would likely mask any upbeat numbers…
At the time of writing, the Loonie was up by 0.04% to C$1.3418 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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