Inflation Puts the EUR, the GBP, and the Loonie in the Spotlight

Earlier in the Day:

It was a busier start to the day on the economic calendar this morning. The Japanese Yen was in action this morning. Early in the session, the PBoC was also in focus. In spite of disappointing GDP numbers from China on Monday, the PBoC left loan prime rates unchanged for October.

For the Japanese Yen

Trade data was in focus early this morning.

In September, Japan’s trade deficit narrowed from ¥637.2bn to ¥622.8. Economists had forecast a narrowing to ¥518.2bn.

According to figures released by the  Ministry of Finance,

• Exports increased by 13.0%, year-on-year, in September.
• To China, exports increased by 10.3%, with exports to Germany rising by 16.9%.
• Exports to the U.S fell by 3.3%, however, with exports to Australia sliding by 16.1%.
• Imports increased by 38.6%, year-on-year, in September.
• From the U.S, imports were up 36.3%, with imports from Australia surging 99.5%.
• Imports from China were up 23.8%, with imports from Germany rising by 24.2% year-on-year.

The Japanese Yen moved from ¥114.538 to ¥114.540 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.09% to ¥114.480 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was up by 0.15% to $0.7485, with the Kiwi Dollar up by 0.18% to $0.7167.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Wholesale inflation figures from Germany and finalized September inflation figures for the Eurozone will be in focus.

While wholesale inflation figures will draw plenty of attention, any upward revisions from prelim figures for the Eurozone will be key.

At the time of writing, the EUR was up by 0.09% to $1.1643.

For the Pound

It’s a busier day ahead on the economic calendar, with September inflation figures due out ahead of the European open.

With the BoE talking of the negative impact of the inflation spike on the UK economy, a further pickup would support the Pound.

At the time of writing, the Pound was up by 0.09% to $1.3809.

Across the Pond

It’s a particularly quiet day ahead. There are no major stats to provide the Greenback and the markets with direction later in the day.

A lack of stats will leave the markets in the hands of FOMC member chatter on the day.

At the time of writing, the U.S Dollar Spot Index was up by 0.06% to 93.793.

For the Loonie

It’s a busier day ahead for the Loonie, with inflation figures for September in focus.

Expect the numbers to influence with the markets looking ahead to next week’s BoC monetary policy decision.

Away from the economic calendar, crude oil prices and inventories will also continue to influence.

At the time of writing, the Loonie was up by 0.11% to C$1.2350 against the U.S Dollar.

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