U.S Nonfarm Payrolls Puts the Greenback back in the Spotlight

Earlier in the Day:

It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen was in action early in the Asian session. Later in the morning, the RBA’s monetary policy statement will be in focus.

For the Japanese Yen

In September, household spending jumped by 5.0%, reversing a 3.9% fall from August. Economists had forecast a more modest 2.8% increase. Year-on-year, spending was down 1.9% versus a forecasted 3.9% drop. In August, spending had been down by 3.0%.

According to the Statistic Bureau,

• Spending on furniture and household utensils were down 15.8%, year-on-year, with spending on culture & recreation down 8.6%.
• There were also marked declines in spending on clothing & footwear (-8.1%), transportation & communication (-6.5%), and fuel, light, & water charges (-5.7%).
• There was a sharp increase in spending on education (+20.7%), however, with spending on medical care up 9.4%.
• Spending on housing rose by 5.3%.

The Japanese Yen moved from ¥113.831 to ¥113.845 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.09% to ¥113.860 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was up by 0.08% to $0.7407, with the Kiwi Dollar up by 0.06% to $0.7108.

The Day Ahead

For the EUR

It’s a relatively busy day ahead on the economic calendar. French nonfarm payrolls, German industrial production, and Eurozone retail sales figures will be in focus.

Barring particularly dire nonfarm payrolls from France, expect Germany and the Eurozone’s data to be key.

At the time of writing, the EUR was flat at $1.1554.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no major 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 as the markets respond further to the BoE’s forward guidance on Thursday.

At the time of writing, the Pound was up by 0.04% to $1.35068.

Across the Pond

It’s a busy day ahead on the economic calendar.

Nonfarm payrolls will be in focus later today and we can expect plenty of market sensitivity to the numbers.

Expect any FOMC member chatter to also influence, however.

On Thursday, the U.S Dollar Spot Index rose by 0.51% to end the day at 94.347.

For the Loonie

It’s a busier day ahead. Employment and Ivey PMI numbers will be in focus. Expect the employment figures for October to be key, however.

At the time of writing, the Loonie was up by 0.02% to C$1.2454 against the U.S Dollar.

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