A Quiet Day Ahead Leaves COVID-19 and Reflection on FED Policy to Influence

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 action this morning.

For the Japanese Yen

Retail sales figures drew attention in the early hours.

According to the Ministry of Economy, Trade and Industry, retail sales rose by 2.4%, year-on-year, in July versus a forecasted 2.1% increase. In June, retail sales had risen by 0.1%.

The Japanese Yen moved from ¥109.857 to ¥109.863 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.09% to ¥109.740 against the U.S Dollar.

For the Aussie Dollar

Company gross operating profits were in focus this morning

In the 2^nd quarter, operating profits jumped by 7.1%, reversing a 0.3% decline from the previous quarter. Economists had forecast a 3.0% rise.

According to the ABS, company gross operating profits were up 5.5% compared with the 2^nd quarter of 2020.

The Aussie Dollar moved from $0.73176 to $0.73183 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.08% to $0.7318.

Elsewhere

At the time of writing, the Kiwi Dollar was up by 0.03% to $0.7013.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic data front. Prelim August inflation figures for Spain and Germany are due out later today.

With inflation still a hot topic, expect Germany’s numbers to draw interest. Softer numbers would support the ECB’s transitory view.

At the time of writing, the EUR was up by 0.10% to $1.1807.

For the Pound

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

The lack of stats will leave the Pound in the hands of market risk sentiment on the day.

At the time of writing, the Pound was up by 0.04% to $1.3770.

Across the Pond

It’s a quiet day ahead. Pending home sales figures for July are due out later today. We don’t expect the numbers to move the dial, however.

COVID-19 news updates from the U.S and further reaction from FED Chair Powell’s speech will influence.

At the time of writing, the U.S Dollar Spot Index was down by 0.06% to 92.626.

For the Loonie

It’s a relatively quiet day on the economic calendar. Current account numbers for 2^nd quarter are due out later in the day.

The numbers are unlikely to influence, however, leaving crude oil prices and market risk sentiment to provide direction.

At the time of writing, the Loonie was up by 0.05% to C$1.2614 against the U.S Dollar.

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