Highlight of the Day: Due to Geo Political Risk Spikes EUR and the Pound Remain in the Spot Light
Economic information is probably going to possess a comparatively muted impact on the majors through the day, with heightened geo-political risk to drive the EUR and also the GBP.
Earlier in the Day:
Economic data discharged through the Asian session this morning was on the lighter aspect yet again, with key stats restricted to Gregorian calendar month business confidence figures out of Australia.
For the Aussie Dollar, October’s NAB Business Confidence Index stood at 4, easing by 2 points from September’s 6.
• The business conditions index also fell by 2 points to +12, with business conditions holding well above the average, while business confidence sits below the average.
• October’s decline was attributed to the employment component
The Aussie Dollar moved from $0.71701 to $0.71736 upon release of the figures before rising to $0.7180 at the time of writing, a gain of 0.10% for the session.
Elsewhere, the Japanese Yen was up 0.11% to ¥113.71 against the U.S Dollar, with the Kiwi Dollar up 0.21% to $0.6724, the Kiwi Dollar finding support in spite of the risk off sentiment across the broader market, with the Asian equity markets on the slide following the overnight losses in the U.S.
The Day Ahead:
For the EUR, economic data consist of finalized October inflation figures out of Germany that are unlikely to have a material impact on the EUR and November economic sentiment numbers out of Germany and the Eurozone, with influence hinged on the Italian Coalition government’s budget submission, which will remain the markets main area of focus.
The deadline is today and uncertainty has tanked the EUR over the last week, the EUR having fallen from $1.14 levels to $1.12 levels.
At the time of writing, the EUR was up 0.13% to $1.233, with noise from Italy and Brussels the key driver for the EUR through the day.
For the Pound, it’s a busier day on the data front, with key stats scheduled for release this morning including September’s wage growth and unemployment rate and October’s claimant count figures.
While the numbers traditionally have a material influence on the Pound, we can expect a relatively muted response this time around, with focus remaining on Brexit through the day, the Pound joining the EUR on a slide, with market jitters over a Brexit no deal weighing.
At the time of writing, the Pound was up 0.11% to $1.2863, with Brexit news the key driver through the day.
Across the Pond, there aren't any material stats regular for unleash, that leaves Capitol Hill because the key driver, whereas market sentiment towards Brexit and therefore the Italian government may offer more support for the dollar through the day ought to the wires deliver additional dangerous news.
At the time of writing, the dollar Spot Index was up zero.05% to 97.586, with Capitol Hill and geo-political risk in Europe remaining focus through the day.
For the Loonie, with another quiet day on the economic calendar front, fossil oil can still offer direction, with OPEC’s monthly report regular for unleash within the early afternoon.
The Loonie was up zero.09% to C$1.3235 against the U.S dollar at the time of writing, with fossil oil costs the key driver through the day.