A Quiet Economic Calendar Leaves Geopolitics and COVID-19 in Focus

Bob Mason
·4 min read

Earlier in the Day:

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

Away from the economic calendar, risk appetite picked up on news that the U.S FDA approved the use of blood plasma from recovered patients to treat COVID-19.

Effective COVID-19 treatment would ease the effects of the persistent spread of the virus on the global economy.

For the Kiwi Dollar

Retail sales tumbled by 14.6% in the 2nd quarter, following a 1.20% decline in the 1st quarter. For the quarter, core retail sales slid by 13.7%. In the 1st quarter, core retail sales had risen by 0.60%.

According to NZ Stats,

  • Spending on eating out, accommodation away from home, vehicles, and fuel fell sharply in the June 2020 quarter compared with the June 2019 quarter.

  • A strong rise in supermarket and grocery sales partly offset the slump.

  • COVID-19 restrictions led to the marked decline in retail sales in the quarter. Non-essential businesses had been temporarily closed for close to half of the 2nd

Looking at the numbers,

  • Sales for food and beverage services slumped by 40%, with fuel retailing sliding by 35%.

  • Accommodation services slid by 44%, with motor vehicles and parts retailing down by 22%.

  • Supermarket and grocery store sales jumped by 12% off the back of a record 13% rise in the March 2020 quarter.

The Kiwi Dollar moved from $0.65394 to $0.65434 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.08% to $0.6546.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.08% ¥105.72 against the U.S Dollar, with the Aussie Dollar up by 0.18% to $0.7174.

The Day Ahead:

For the EUR

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

Following last week’s ECB monetary policy meeting minutes and private sector PMIs, the EUR could be under pressure today.

Geopolitics will be in focus, with the markets tracking chatter from Beijing and Washington and updates on Brexit.

At the time of writing, the EUR was up by 0.06% to $1.1804.

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 leave the Pound in the hands of Brexit, the latest COVID-19 numbers, and geopolitical risk.

We’ve seen the Eurozone economic recovery come undone due to fresh spikes in COVID-19 cases. Expect the same for the UK should new cases spike, which would be negative for the Pound.

At the time of writing, the Pound was up by 0.04% to $1.3095.

Across the Pond

It’s a quiet day ahead for the U.S Dollar. There are no material stats to provide the Greenback with direction.

A lack of stats will leave the Dollar in the hands of geopolitics and any chatter on the COVID-19 stimulus package.

At the time of writing, the Dollar Spot Index was down by 0.11% to 93.149.

For the Loonie

It’s also a quiet day on the economic data front. There are no material stats to provide the Loonie with direction.

We would expect geopolitics and COVID-19 news to drive market risk appetite and crude oil prices and ultimately the Loonie on the day.

At the time of writing, the Loonie was up by 0.03% to C$1.3173 against the U.S Dollar.

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

This article was originally posted on FX Empire

More From FXEMPIRE:

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories