In This Article:
Earlier in the Day:
It was a relatively quiet day on the Asian economic calendar this morning, with economic data limited to Business PMI numbers out of New Zealand.
Updates from China and the rest of the world on COVID-19 cases and the number of deaths also influenced early in the day. Numbers were on the rise as health authorities in the UK scrambled to avert a spread…
For the Kiwi Dollar
The Business PMI increased from 49.3 to 49.6 in January, falling short of a forecast of 51.0.
The Kiwi Dollar moved from $0.64398 to $0.64373 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.02% to $0.6436.
Elsewhere
At the time of writing, the Japanese Yen was up by 0.02% to ¥109.90 against the U.S Dollar, with the Aussie Dollar was up by 0.07% to $0.6724.
The latest updates from China on the number of COVID-19 cases and related deaths tested the majors early on.
The Day Ahead:
For the EUR
It’s a busy day ahead on the economic calendar. Economic data includes 1st estimate GDP numbers out of Germany and 2nd estimate GDP numbers for the Eurozone.
Finalized January inflation figures are also due out of Spain along with December trade data for the Eurozone.
Barring a downward revision to Eurozone GDP numbers, the focus will be on Germany’s GDP figures.
In spite of some quite disappointing numbers out of Germany of late, economists are expecting Germany to avoid a contraction.
With the spread of COVID-19 and slash in China’s growth forecasts for the 1st quarter, however, any contraction in the 4th quarter will weigh heavily.
Outside of the numbers, market risk sentiment will also influence as the global financial markets digest the latest updates from China.
At the time of writing, the EUR was down by 0.06 at $1.0835.
For the Pound
It’s yet another particularly quiet day ahead on the economic calendar, with no material stats due out of the UK to provide direction.
We saw the Pound find support on Thursday following Chancellor of the Exchequer Sajid Javid’s resignation. Expectations are for the Government to loosen the purse strings in next month’s budget. The latest cabinet reshuffle points to just that, which was considered Pound positive.
The question now will be just how far the government will go, as plenty of uncertainty lies ahead.
At the time of writing, the Pound was flat at $1.3046.
Across the Pond
It’s a busier day ahead on the data front. January retail sales figures, industrial production, and prelim February consumer sentiment figures are due out. Business inventory numbers for December are also due out.