U.S Politics, Private Sector PMIs, and COVID-19 to Keep the Markets Busy

Bob Mason
·4 min read

Earlier in the Day:

It’s was a busier start to the day on the economic calendar this morning. The Aussie Dollar, the Kiwi Dollar, and the Japanese Yen were in action in the early part of the day.

Away from the economic calendar, COVID-19 and U.S politics also provided direction early on.

The final live televised U.S Presidential debate is due to kick off shortly, which will also draw plenty of interest.

For the Kiwi Dollar

3rd quarter inflation figures were in focus in the early hours of this morning.

In the 3rd quarter, the annual rate of inflation softened from 1.5% to 1.4%. Economists had forecast a pickup to 1.7%. Quarter-on-quarter, consumer prices rose by 0.70%, reversing a 0.5% slide from the 2nd quarter. Economists had forecast a 0.9% rise.

The Kiwi Dollar moved from $0.66716 to $0.66666 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.10% to $0.6669.

For the Japanese Yen

Inflation figures for September and prelim private sector PMIs for October were in focus this morning.

In September, the annual rate of core inflation fell by 0.3%, picking up from a 0.4% decline in August. Economists had forecast a 0.4% fall.

The Japanese Yen moved from ¥104.892 to ¥104.913 upon release of the figures that preceded the private sector PMIs.

In October, the services PMI fell from 46.9 to 46.6, while the manufacturing PMI rose from 47.7 to 48.0.

According to the prelim October survey,

  • New orders fell at a weaker pace across both the services and manufacturing sectors.

  • Manufacturing companies reduced headcount at a faster pace, while the decline was softer across the services sector.

  • For the manufacturing sector, the deterioration in sector activity was the slowest since January.

  • Business sentiment rose to more than a 2-year high at the start of the 4th

The Japanese Yen moved from ¥104.799 to ¥104.805 upon release of the PMIs. At the time of writing, the Japanese Yen was up by 0.10% ¥104.76 against the U.S Dollar.

For the Aussie Dollar

October’s prelim private sector PMIs were also in focus.

The Manufacturing PMI fell from 55.4 to 54.2, while the services PMI rose from 50.8 to 53.8.

The Aussie Dollar moved from $0.71131 to $0.71178 upon release of the PMIs. At the time of writing, the Aussie Dollar was up by 0.01% to $0.7119.

The Day Ahead:

For the EUR

It’s a busy day ahead on the economic calendar. Key stats include prelim October private sector PMI numbers for France, Germany, and the Eurozone.

With EU member states getting hit by a 2nd wave of the COVID-19 pandemic, the October numbers will garner plenty of interest.

Expect disappointing numbers to materially influence the EUR and sentiment towards economic recovery and monetary policy.

Away from the stats, expect Brexit and COVID-19 to continue to influence on the day.

At the time of writing, the EUR was down by 0.18% to $1.1797.

For the Pound

It’s a busy day ahead on the economic calendar. Key stats include September retail sales figures and October prelim private sector PMIs.

Expect the retail sales and service sector PMI to have the greatest influence on the Pound.

Away from the economic calendar, expect Brexit and any further updates on COVID-19 containment measures to also influence.

At the time of writing, the Pound was down by 0.13% to $1.3066.

Across the Pond

It’s a relatively busy day ahead for the U.S Dollar.

Key stats include October’s prelim private sector PMIs for October.

Barring particularly dire manufacturing numbers, the services PMI will be the key driver later today.

Away from the economic calendar, however, expect U.S politics to also influence on the day.

The final Presidential debate this morning and updates from Capitol Hill will influence on the day.

At the time of writing, the Dollar Spot Index was up by 0.09% to 93.0340.

For the Loonie

It’s another particularly quiet day ahead on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.

The lack of stats will leave U.S politics, COVID-19, and the private sector PMIs from the U.S and the Eurozone in focus on the day.

At the time of writing, the Loonie was down by 0.14% to C$1.3155 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

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