Capitol Hill, COVID-19, Geopolitics, and U.S Stats to Keep the Dollar in Focus

It’s was a relatively quiet start to the day on the economic calendar this morning. The Japanese Yen was in action in the early part of the day.

Away from the economic calendar, there was little for the markets to consider. Following the postponement of U.S – China trade talks from the weekend, a continued lack of progress towards a U.S stimulus package tested risk sentiment early on.

For the Japanese Yen

In the 2nd quarter, the economy contracted by 7.8%, following a 0.6% contraction in the 1st quarter. Economists had forecast a contraction of 7.6%.

While capital expenditure and external demand fell by less than forecasted, a large slump in private consumption led to a more marked contraction.

Quarter-on-quarter, private consumption slumped by 8.2%, following a 0.8% decline in the 1st quarter. Economists had forecast a 7.1% slide in consumption.

On an annualized basis, the economy contracted by 27.8%, following a 2.2% contraction in the 1st quarter. Economists had forecast a 27.2% contraction.

Later in the morning, June’s finalized industrial production figures are due out but should have a muted impact on the Yen.

The Japanese Yen moved from ¥106.555 to ¥106.648 upon release of the data. At the time of writing, the Japanese Yen was up by 0.07% ¥106.53 against the U.S Dollar.

At the time of writing, the Aussie Dollar was up by 0.22% to $0.7187, while the Kiwi Dollar was down by 0.17% to $0.6531.

For the EUR

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

A lack of stats will leave the EUR in the hands of any chatter on the postponed U.S – China trade talks and on the U.S COVID-19 stimulus package.

At the time of writing, the EUR was up by 0.03% to $1.1845.

For the Pound

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

A lack of stats will continue to leave the Pound in the hands of any Brexit chatter and market risk appetite.

At the time of writing, the Pound was up by 0.08% to $1.3096.

Across the Pond

It’s a relatively quiet day ahead for the U.S Dollar. Key stats include August’s NY Empire State Manufacturing Index figures.

With economic data on the lighter side expect the numbers to influence market risk sentiment later in the day.

Away from the economic calendar, any updates on the U.S – China trade talks, and any progress towards a COVID-19 stimulus bill will also influence.

At the time of writing, the Dollar Spot Index was down by 0.06% to 93.037.

For the Loonie

It’s a quiet day on the economic data front. Canadian foreign securities purchases for June are due out later today.

Don’t expect any influence from the numbers, however. Risk sentiment will remain the key driver on the day.

At the time of writing, the Loonie was up by 0.05% to C$1.3260 against the U.S Dollar. #USDollarIndex##FX#

Reprinted from Fxempire，the copyright all reserved by the original author.