A Busy Economic Calendar Puts the EUR and the Greenback in Focus as the Pound Struggles
Earlier in the Day:
It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen and the Aussie Dollar were in focus in the early hours of this morning.
For the Japanese Yen
Tankan survey data for the 3rd quarter were in focus.
The Tankan All Big Industry CAPEX increased by 10.1% versus a forecasted 9.1%. In the 2nd quarter the index had risen by 9.6%
In the quarter, the Tankan Big Manufacturing Outlook Index climbed from 13 to 14 versus a forecasted 15.
The Tankan Large Manufacturers Index fell from 14 to 18, however, versus a forecasted decline to 13.
Non-manufacturers didn’t do much better, with the Large Non-Manufacturers Index rising from 1 to 2. Economists had forecast an increase to 3.
The Japanese Yen moved from ¥111.454 to ¥111.427 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.02% to ¥111.270 against the U.S Dollar.
For the Aussie Dollar
The AIG Manufacturing Index fell from 51.6 to 51.2.
According to the September Survey,
This was the weakest monthly result since September 2020.
Activity indices pointed to a pause or contraction in average sales, employment, and delivery levels.
Forward orders and inventories continued to expand, however, suggesting that sales are being delayed.
Exports and production improved, moving back into mild expansion.
The Aussie Dollar moved from $0.72286 to $0.72293 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.04% to $0.7224.
Elsewhere
At the time of writing, the Kiwi Dollar was down by 0.12% to $0.6891.
The Day Ahead
For the EUR
It’s another busy day ahead on the economic calendar. Early in the European session, German retail sales will be in focus. Following a tumble in spending back in July, the markets will be looking for a marked pickup to support the economic recovery.
Later in the morning, however, manufacturing PMI figures for Italy and Spain and finalized PMIs for France, Germany, and the Eurozone will be in focus.
Barring revisions to prelim figures, expect Italy and the Eurozone’s PMIs and German retail sales to be key.
On the inflation front, prelim September inflation figures for the Eurozone will also draw plenty of interest. The jury is still out on whether the ECB’s transitory view is aligned with supply and demand imbalances.
At the time of writing, the EUR was down by 0.08% to $1.1571.
For the Pound
It’s a relatively busy day ahead on the economic calendar.
Finalized manufacturing PMI numbers for September will be in focus. Following better than expected 2nd quarter GDP numbers on Thursday, upward revisions should support the defensive Pound.
At the time of writing, the Pound was down by 0.16% to $1.3453.
Across the Pond
It’s a busy day ahead. Personal spending, inflation, and ISM Manufacturing PMI numbers for September will be in focus.
Late in the day, finalized consumer sentiment figures will also draw interest.
Expect a further pickup in inflationary pressure to spook the markets…
From Capitol Hill, news updates will likely have a greater influence alongside any monetary policy chatter.
At the time of writing, the U.S Dollar Spot Index was up by 0.13% to 94.350.
For the Loonie
It’s a relatively quiet day ahead for the Loonie. GDP numbers for July are due out later in the day. With little else for the markets to consider, expect the numbers to influence upon release.
From elsewhere, manufacturing PMIs and market risk sentiment will be key, however.
At the time of writing, the Loonie was down by 0.17% to C$1.2701 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