There are no material economic stats scheduled for release through the afternoon. Leaving the EUR in the hands of market risk appetite and sentiment towards the global economy. Disappointing earnings figures out of the U.S being overshadowed by trade. Chatter as the week comes to an end. Trade tariff chatter could be a negative factor for the EUR. Through the day should Trump threaten Brussels with tariffs on autos. The Eurozone economy in no position to absorb the impact of tariffs on already waning demand. At the time of writing, the EUR was up 0.06% to $1.1396.
Economic data scheduled for release through the session includes December core retail sales figures. While we can expect the numbers to provide immediate direction for the Pound. focus will remain on Brexit and any updates on talks between Britain and the EU. While Brussels may lack the incentive to offer more favorable terms. In a hope of a new referendum that ends with Britain remaining within the EU. it could back fire should parliament vote any altered deal. Or even decide to agree to a ‘no deal’ scenario. The EU needs Britain as a trading partner. and a lack of a trade agreement would be as punitive to the EU as it would be Britain. At the time of writing, the Pound was up 0.05% to $1.2992. With focus shifting away from Theresa May’s second great escape to Brussels.
Economic data is on the lighter side through the day. With key stats limited to December industrial production. and prelim January consumer sentiment figures. While we can expect influence on the Dollar. particularly the consumer sentiment figures. risk sentiment through the day and any trade chatter will also be a factor. along with the extended government shutdown. On the monetary policy front, FOMC member Williams is scheduled to speak. with any dovish commentary now expected from even the more bullish members. which should leave the Dollar largely unresponsive to any dovish chatter. With the government shutdown heading for a 5th week. with no end in sight, the effects of the shutdown will begin to have a more significant impact. on the U.S economy and quite likely the popularity of the U.S President. At the time of writing, the Dollar Spot Index was down 0.02% to 96.044.
After a quite week on the data front, economic data scheduled. for release includes December inflation numbers. Inflation would need to come in better than forecasted. with an uptick in the annual rate of inflation a consideration for the BoC. though it’s going to take more than an uptick in inflation to, give the BoC a reason to get more hawkish. Outside of the numbers. the IEA’s monthly report and impact on crude oil prices will. also have an influence through the day. The Loonie was up 0.08% to C$1.3269 against the U.S Dollar at the time of writing.