In This Article:
Earlier in the Day:
It’s was a particularly busy start to the day on the economic calendar this morning. The Japanese Yen was in action early on, with economic data from China also in focus. Away from the economic calendar, U.S politics and COVID-19 were also in focus.
Positive chatter from Capitol Hill and hopes of a COVID-19 vaccine supported riskier assets early on.
Nancy Pelosi raised hope of a pre-Election Stimulus Bill over the weekend, while also setting a deadline for talks.
At the end of last week, U.S Pharma Phizer talked of having a COVID-19 vaccine ready before the end of the year.
For the Japanese Yen
Japan’s trade surplus widened from ¥248.6bn to ¥675.0bn in September. Economists had forecast a widening to ¥989.8bn.
According to figures released by the Ministry of Finance,
-
Exports fell by 4.9% when compared with September 2019.
-
Exports to China jumped by 14.0%, while down by 2.0% to Asia.
-
Exports to the U.S rose by just 0.7%, while exports to Western Europe fell by 6.4%.
-
-
Imports tumbled by 17.2% when compared with September 2019.
-
Imports from China slid by 11.9% while falling by 12.6% from Asia.
-
From the U.S, imports fell by 9.9%, with imports from Western Europe sliding by 14.4%.
-
The Japanese Yen moved from ¥105.426 to ¥105.443 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.01% ¥105.41 against the U.S Dollar.
Out of China
3rd quarter GDP, fixed asset investment, industrial production, retail sales, and unemployment figures were in focus this morning.
In the 3rd quarter, China’s economy grew by 2.7%, quarter-on-quarter, following 11.5% growth in the 2nd quarter. Year-on-year, the economy expanded by 4.9%, following 3.2% growth in the 2nd quarter. Economists had forecasted growth of 3.2% and 5.2% respectively.
Industrial production increased by 6.9%, year-on-year, in September, following a 5.6% rise in August. Economists had forecast a 5.8% increase.
Retail sales increased by 3.3%, following a 0.5% increase in August. Economists had forecast a 1.8% rise.
The unemployment rate declined from 5.6% to 5.4% in September, which was better than a forecasted decline to 5.5%.
The Aussie Dollar moved from $0.71031 to $0.70961 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.27% to $0.7100.
Elsewhere
At the time of writing, the Kiwi Dollar was up by 0.30% to $0.6622.
The Day Ahead:
For the EUR
It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.