In This Article:
Earlier in the Day:
It’s was a quiet start to the week on the economic calendar this morning. There were no material stats for the markets to consider in the early part of the day. While there were no stats, the PBoC was in action at the start of the day.
While there were no stats, a lack of progress towards a U.S stimulus package and COVID-19 news weighed on risk sentiment.
From China
The PBoC left loan prime rates unchanged this morning, which was in line with market expectations.
For December, the 3-year Loan Prime Rate and 5-year Loan Prime Rate were left unchanged at 3.85% and 4.65% respectively.
Positive economic data from China through the 4th quarter continued to reflect the economic recovery from the 2nd quarter meltdown. The decision to leave rates unchanged was in line with forward guidance from earlier in the year, supported by an optimistic outlook towards the economic recovery.
The Aussie Dollar moved from $0.75980 to $0.75946 upon the PBoC decision. At the time of writing, the Aussie Dollar was down by 0.43% to $0.7589.
Elsewhere
At the time of writing, the Kiwi Dollar was down by 0.49% to $0.7101, while the Japanese Yen was up by 0.02% to ¥103.28 against the U.S Dollar.
The Day Ahead:
For the EUR
It’s a relatively quiet day ahead on the economic calendar. Flash consumer confidence figures for the Eurozone are due out later today.
The markets will be looking for a pickup in consumer confidence fueled by the recent COVID-19 vaccine news.
Away from the economic calendar, however, Brexit, COVID-19 news, and updates from Capitol Hill will remain the key drivers.
At the time of writing, the EUR was down by 0.38% to $1.2211.
For the Pound
It’s a 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 leave the Pound firmly in the hands of Brexit and COVID-19 news updates.
From the weekend, there was a lack of progress towards Brexit. More alarmingly, however, was the discovery of a new strain of the Coronavirus. As a result, the UK Government was forced to reintroduce immediate lockdown measures.
At the time of writing, the Pound was down by 1.06% to $1.3379.
Across the Pond
It’s a quiet day ahead on the economic calendar. There are no material stats to provide the Dollar with direction on the day.
The lack of stats will leave the Dollar in the hands of COVID-19 news updates and Capitol Hill. A lack of progress towards a stimulus package would support demand for the Dollar.
Expect any negative chatter on Brexit to also support the Greenback.