Economic data and central bank chatter put the euro and the dollar in the spotlight

Early in the day:

The start of the day on the economic calendar was relatively busy this morning. The Kiwi Dollar and Japanese Yen were in action this morning.

For the Kiwi Dollar

The trade figures were at the center of the concerns in the early hours of the morning.

In August, New Zealand’s trade deficit widened from NZ $ 397 million to NZ $ 2,144 million. On a year-over-year basis, the deficit widened from NZ $ 1,100 million to NZ $ 2,940 million.

According to New Zealand statistics,

  • Imports increased NZ $ 1.08 billion from August 2020, leading to a record monthly trade deficit.
  • Exports were little changed, falling by NZ $ 42 million.
  • Imports of vehicles, parts and accessories increased by NZ $ 415 million, while machinery and mechanical equipment increased by NZ $ 223 million.
  • Imports of petroleum and petroleum products increased by NZ $ 207 million.

The Kiwi dollar fell from $ 0.70713 to $ 0.70704 when the figures were released. At the time of this writing, the Kiwi Dollar was up 0.11% to $ 0.7077.

For the Japanese yen

In August, underlying consumer prices were unchanged in August, year-on-year, which is in line with expectations. Underlying consumer prices were down 0.2% year-on-year in July.

Preliminary private sector PMIs were larger.

In September, the services PMI fell from 43.5 to 47.4, while the manufacturing PMI fell from 52.7 to 51.2.

The Japanese yen rose from 110.402 to 110.408 when the numbers were released. At the time of this writing, the Japanese yen was down 0.05% to 109.380 against the US dollar.

Somewhere else

At the time of this writing, the Australian dollar was up 0.23% to $ 0.7312.

The day to come

For the euro

It’s a quieter day ahead on the economic calendar. The business climate figures for Germany will be the focus of the first part of the European session.

Following Thursday’s disappointing PMI figures, a larger-than-expected drop would test euro support.

At the time of this writing, the euro was up 0.07% to $ 1.1747.

For the pound

It is a particularly calm day on the economic calendar.

There are no significant statistics outside of the UK to give direction to the pound.

Following the BoE’s more hawkish stance on Thursday, risk sentiment should deteriorate to weaken the pound.

At the time of this writing, the British Pound was up 0.12% to $ 1.3736.

Across the pond

It’s a relatively calm day ahead. Key stats include new home sales figures, which are expected to have a moderate impact on the dollar.

FED President Powell and another FOMC member, however, are expected to speak later today and may move the dial.

At the time of this writing, the US Dollar Spot Index was down 0.02% to $ 93.063.

For the loonie

It’s a particularly calm day for the Loonie. There are no important statistics to come out of Canada later today.

The lack of statistics will leave the loonie in the hands of market risk sentiment and crude oil prices.

At the time of this writing, the loonie was up 0.08% to C $ 1.2645 against the US dollar.

For an overview of all of today’s economic events, check out our economic calendar.

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