Yahoo Finance Economic Data from China Sets the Tone With Stats on the Lighter Side in the Day Ahead
Earlier in the Day:
It was a relatively busy start to the day on the economic calendar this morning. Economic data from China was in focus the early part of the day.
From China
In April, fixed asset investments increased by 19.9%, year-on-year, coming in ahead of a forecasted 19.0%. In March, fixed asset investments had risen by 25.6%.
Retail sales increased by 17.7%, year-on-year, coming up short of a forecasted 24.9% rise. In March, retail sales had risen by 34.2%.
Of greater significance, however, were industrial production figures for April.
Year-on-year, industrial production rose by 9.8% after having risen by 14.1% in March. Economists had forecast a 9.8% increase.
January through April, compared with January through April 2020, production was up by 20.3%.
For January through March, compared with the same period a year earlier, production had been up by 24.5%.
The Aussie Dollar moved from $0.77572 to $0.77509 upon release of the figures. At the time of writing, with the Aussie Dollar was down by 0.19% to $0.7756.
Elsewhere
At the time of writing, the Japanese Yen was flat at to ¥109.35 against the U.S Dollar, while the Kiwi Dollar was down by 0.36% to $0.7224.
The Day Ahead
For the EUR
It’s a relatively quiet day ahead on the economic data front. Finalized inflation figures for Italy are due out later today.
Barring a marked revision from prelim figures, however, the numbers should have a muted impact on the EUR.
Market risk sentiment will be the key driver on the day. Barring material risk aversion, market optimism towards the Eurozone economic recovery remains EUR positive.
At the time of writing, the EUR was down by 0.07% to $1.2133.
For the Pound
It’s a particularly quiet day ahead on the economic calendar. There are also no material stats to provide the Pound with direction.
The continued reopening of the UK economy and market optimism towards UK economic outlook remains Pound positive.
At the time of writing, the Pound was down by 0.11% to $1.4082.
Across the Pond
It’s a relatively quiet day ahead on the economic calendar. New York Empire State Manufacturing figures for May will be in focus later in the day.
While we will expect some influence from the numbers, a marked decline would be needed to weigh on riskier assets.
Market optimism towards a sharp economic recovery remains, which leaves FOMC member chatter in focus. FED assurances of an extended hold on policy, in spite of a spike in inflation, is going to be needed near-term.
At the time of writing, the Dollar Spot Index was up by 0.07% to 90.385.
For the Loonie
It’s a relatively quiet day ahead on the economic calendar. Foreign securities purchase and housing start figures are due out later today.
Don’t expect too much impact on the Loonie, however.
At the time of writing, the Loonie was down by 0.20% to C$1.2128 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
