collection of various currencies from countries around the world

Economic Data and Geopolitics Put the EUR and the Pound in Focus

Earlier in the Day:

It’s was a relatively quiet start to the day on the economic calendar this morning. Economic data from China was in focus in the early part of the day.

Away from the economic calendar, news of the U.S administration looking to target more Chinese companies tested risk appetite early on.

Out of China

August trade figures were in focus following the recent trade talks between the U.S and China.

In August, the U.S Dollar trade surplus narrowed from $62.33bn to $58.93bn. Economists had forecast a narrowing to $50.50bn.

  • Year-on-year, exports rose by 9.50%, following a 7.2% rise in July. Economists had forecast a 7.1% increase.
  • Imports fell by 2.10%, following a 1.4% decline from July. Economists had forecast a 0.10% rise.

While the jump in exports is positive, the unexpected fall in imports will be a concern, suggesting weaker demand near-term.

The Aussie Dollar moved from $0.72846 to $0.72832 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.03% to $0.7284.

Elsewhere

At the time of writing, the Japanese Yen was down by 0.04% ¥106.28 against the U.S Dollar, with the Kiwi Dollar down by 0.18% to $0.6709.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Key stats include German industrial production figures for July.

With the ECB in action later in the week, expect the numbers to influence on the day. Private sector PMIs for August suggested the need for further support. Weak numbers later today would support that view, particularly with the FED’s change to the policy framework.

At the time of writing, the EUR was down by 0.03% to $1.1835.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. August’s house price figures are due out later today.

We don’t expect the numbers to influence the Pound, however. Brexit and broader market risk sentiment will be key drivers. From the weekend, negative chatter on Brexit contributed to a pullback in the Pound early this morning.

At the time of writing, the Pound was down by 0.29% to $1.3214.

Across the Pond

Its a quiet day ahead for the U.S Dollar, with the U.S markets closed.

Market risk appetite will be the key driver on the day.

The Dollar Spot Index was up by 0.17% to 92.872 at the time of writing.

For the Loonie

The Canadian markets are also closed on Monday, leaving the Loonie in the hands of market risk sentiment and crude oil price on the day.

A pickup in tensions between the U.S and China, contributing to a slide in crude oil prices after Friday’s pullback, weighed on the Loonie.

At the time of writing, the Loonie was down by 0.15% to C$1.3081 against the U.S Dollar.

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