Economic data from Germany and the BoC highlight the euro and the loonie
Early in the day:
The start of the day on the economic calendar was relatively busy this morning. The Australian dollar was in action this morning, with China’s economic data also taking center stage.
For the Australian dollar
In June, the Westpac Consumer Sentiment Index fell 5.2% to 107.2. June’s drop followed a 4.8% drop in May.
According to the latest Westpac report,
- Two consecutive monthly declines followed a jump to an 11-year high in April.
- Concerns over a 2-week lockdown in Melbourne weighed on consumer confidence.
- All components of the index were down in June.
- Economic conditions over the next 12 months are down 10.3%, with family finances down 8.5% from a year ago.
- The unemployment expectations index rose 8.2% but remained down 14.8% year on year.
The Australian dollar rose from $ 0.77427 to $ 0.77421 when the figures were released. At the time of this writing, the Australian dollar was down 0.08% to $ 0.7736.
Inflation figures have also attracted attention.
In May, the annual inflation rate fell from 0.9% to 1.3%. Economists were forecasting an annual inflation rate of 1.6%. On a monthly basis, consumer prices fell 0.2%, after falling 0.3% in April.
Wholesale inflation has also accelerated. The annual wholesale inflation rate accelerated from 6.8% to 9.0%. Economists had forecast an annual wholesale inflation rate of 8.5%.
The Australian dollar fell from $ 0.77417 to $ 0.77426 when the figures were released.
As of this writing, the Japanese Yen was up 0.01% to 109.49 against the US Dollar, while the Kiwi Dollar was down 0.06% to $ 0.7196.
The day to come
For the euro
It’s a quieter day ahead on the economic data front. The German economy is once again the center of attention, with April trade data due to be released later this morning.
With little to focus on ahead of the ECB’s policy decision and tomorrow’s press conference, we can expect the numbers to influence.
At the time of this writing, the Euro was up 0.06% to $ 1.2180.
For the pound
It’s another calm day to come on the economic calendar. There are no significant statistics outside of the UK to give direction to the pound sterling.
At the time of this writing, the pound was stable at $ 1.4157.
Across the pond
It is also a particularly calm day on the economic calendar. There are no important statistics to give direction to the dollar and the markets at large.
The lack of stats will leave Capitol Hill updates to the fore.
At the time of this writing, the Dollar Spot Index was up 0.01% to 90.084.
For the loonie
It’s a calm day ahead on the economic data front, with no major statistics to consider.
The BoC is in action, however, which will certainly give the loonie some direction.
After the hawkish gossip last time around, will there be hawkish gossip or will the BoC be a little nervous about a possible leap into the loonie?
At the time of this writing, the loonie was up 0.01% to C $ 1.2110 against the US dollar.
For an overview of all of today’s economic events, check out our economic calendar.