The Day Ahead:
For the EUR
It’s a relatively quiet day ahead on the economic calendar, with Germany’s trade data for September in focus.
As the Eurozone falls to a 2nd wave of the COVID-19 pandemic, however, the stats are unlikely to have a material impact.
The markets will be looking towards October and November data to ascertain the damage to the 4th quarter.
Away from the economic calendar, expect any further updates on COVID-19 to remain a factor. Brexit and U.S Politics will also influence. Biden’s victory is considered EUR positive.
On the monetary policy front, ECB President Lagarde could move the dial and soften the EUR. The ECB President had talked of further easing next month. Any hints should pin back the EUR.
At the time of writing, the EUR was up by 0.11% to $1.1887.
For the Pound
It’s a quiet day ahead on the economic calendar, with no material stats to provide direction on the day.
While there are no material stats to consider, BoE Governor Bailey is scheduled to speak later this morning. There may be few surprises, however, following last week’s policy decision.
Away from the economic calendar, updates on Brexit and COVID-19 will remain key drivers. It’s last chance saloon for a Brexit deal this week. Chatter from the weekend suggests that a deal is imminent. With Biden looking to take the Presidency, some compromise from the UK may be likely in a bid to seal a trade agreement with the U.S in return.
At the time of writing, the Pound was up by 0.21% to $1.3184.
Across the Pond
It’s a quiet day ahead for the U.S Dollar. There are no material stats to provide direction. The focus will remain on Capitol Hill.
Vote recounts and court rulings will need monitoring, following Biden’s victory.
At the time of writing, the Dollar Spot Index was down by 0.04% to 92.195.
For the Loonie
It’s a relatively quiet day on the economic data front. Housing start numbers are due out later today. The numbers should have a muted impact on the Loonie, however.
Expect market risk sentiment to be the key driver as the markets respond to the Biden victory.
At the time of writing, the Loonie was up by 0.24% to C$1.3019 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.