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A Quiet Day ahead of Busy Week Leaves the Majors in the Hands of Geopolitics

Earlier in the Day:

It’s was a quiet start to the day on the economic calendar this morning. There were no material stats through the early part of the Asian session to provide the majors with direction.

On the geopolitical risk front, U.S – China tensions and the Liberal Democratic Party leadership election were in focus.

With TikTok’s sale deadline looming, Huawei is also in the spotlight. The telco’s suppliers are due to stop shipments after mid-night today. This not only impacts U.S suppliers but also Huawei’s Asian suppliers including Taiwan Semiconductor Manufacturing Co. All non-U.S suppliers that use American tech will be required to apply for a license to continue supplying Huawei.

For the Japanese Yen

Finalized industrial production figures for July are due out later today. Barring any marked downward revision to the prelim 8% jump, however, the stats should have a muted impact on the Yen.

This morning, Japan’s governing party is expected to vote in Yoshihide Suga, who is also expected to continue Abe’s policies. Any surprise outcomes would, therefore, be a test for the Yen…

At the time of writing, the Japanese Yen was up by 0.07% ¥106.09 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was down by 0.01% to $0.7283, while the Kiwi Dollar was up by 0.41% to $0.6693.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. July industrial production figures are due out in the early part of the day.

With the markets having digested production figures from key member states, today’s data should have a muted impact on the EUR.

On the geopolitical risk front, however, expect Brexit and chatter from Beijing and Washington to influence.

At the time of writing, the EUR was up by 0.03% to $1.1850.

For the Pound

It’s a particularly quiet day ahead of a busy week on the economic calendar. There are no material stats due out to provide the Pound with direction.

The lack of stats will leave the Pound in the hands of Brexit and market risk sentiment,

While Brexit chatter from the weekend was of little use for the bulls, talk of a resumption of COVID-19 vaccine trials was positive.

Over the weekend, the news wires reported that Oxford University is to resume clinical trials on its COVID-19 vaccine. Ultimately, however, with Brexit and economic doom and gloom, any upside would likely be limited.

At the time of writing, the Pound was up by 0.23% to $1.2825.

Across the Pond

It’s also a particularly quiet day ahead for the U.S Dollar. There are no material stats due out of the U.S to provide the greenback with direction

With a lack of stats to consider, chatter on TikTok, U.S and China relations, and Brexit will be key drivers.

The Dollar Spot Index was down by 0.16% to 93.183 at the time of writing.

For the Loonie

It’s another quiet day ahead, with no material stats due out of Canada to provide the Loonie with direction.

A lack of stats will leave the Loonie in the hands of market risk sentiment and crude oil prices. OPEC’s monthly report is due out today. We’ve seen crude oil prices suffer of late as a result of demand concerns.

Negative projections on demand would be negative for the Loonie.

At the time of writing, the Loonie was up by 0.14% to C$1.3160 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.