UK retail sales put sterling in the spotlight
Early in the day:
It was a quiet start to the day on the economic calendar this morning. The Kiwi dollar was back in action this morning.
For the Kiwi Dollar
Business PMI figures were the focus of the early hours.
In August, the Business PMI fell from 62.6 to 40.1. The PMI fell from 60.7 to 62.6 in July.
According to August survey,
- Down 22.1 points from July, the PMI avoided a drop to below 30 levels seen in the middle of the 2020 Level 4 lockdown.
- The production sub-index was the hardest hit, dropping from 63.9 to 27.7.
- New orders fell from 63.7 to 44.4, with deliveries and finished stocks also falling below the 50 mark.
- In contrast, the employment sub-index fell more modestly from 57.9 to 54.5.
The Kiwi dollar fell from $ 0.70726 to $ 0.70715 when the figures were released. At the time of this writing, the Kiwi Dollar was down 0.01% to $ 0.7074.
At the time of writing, the Japanese yen was stable at 109.730 against the US dollar, while the Australian dollar was up 0.04% to $ 0.7295.
The day to come
For the euro
It’s a relatively calm day ahead on the economic calendar. The final August inflation figures for the euro zone are due later today.
With few other considerations for the markets, expect any upward revision to influence the Euro.
At the time of this writing, the Euro was down 0.02% to $ 1.1765.
For the pound
It’s a busy day on the economic calendar. Retail sales figures for August are due later this morning.
As markets await the BoE’s monetary policy decision next week, we can expect the pound to be sensitive to the numbers.
After a resumption of inflationary pressures and better-than-expected employment figures, positive figures would suggest a more hawkish MPC.
At the time of this writing, the pound was up 0.02% to $ 1.3798.
Across the pond
It’s a relatively calm day ahead. Michigan consumer sentiment and expectations figures are due later today.
With market sensitivity to consumer sentiment increased due to the Delta variant, expect the numbers to influence market risk sentiment.
The US dollar spot index ended Thursday up 0.41% to $ 92.932.
For the loonie
It’s a particularly calm day for the Loonie, however. There are no important statistics outside of Canada to give direction to the loonie.
The lack of statistics will leave the loonie in the hands of crude oil prices and market risk sentiment.
At the time of this writing, the loonie was up 0.02% to C $ 1.2681 against the US dollar.
For an overview of all of today’s economic events, check out our economic calendar.