The Day Ahead
For the EUR
It’s a quieter day ahead on the economic data front. French nonfarm payrolls for the 1st quarter are due out ahead of the European open.
We don’t expect too much influence from the numbers, with COVID-19 lockdown measures likely to have influenced.
Later in the day, the ECB will deliver it’s June monetary policy decision, which is the main event of the week.
With the markets expecting the ECB to stand pat on policy, any talk of tapering and the ECB’s outlook on inflation and the economic recovery will be key. Ahead of the meeting, the ECB doves had assured the markets that there would be no tapering to the asset purchasing program any time soon.
At the time of writing, the EUR was down by 0.02% to $1.2178.
For the Pound
It’s another quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction.
Near-term, the Pound remains torn between an optimistic economic outlook and concerns over new strains of the coronavirus.
At the time of writing, the Pound was down by 0.04% to $1.4112.
Across the Pond
It’s a busier day ahead on the economic calendar. May inflation and weekly jobless claims figures will be in focus.
Sensitivity to any marked pickup in inflationary pressures will likely spur demand for the Greenback. A marked fall in jobless claims would also add demand for the Dollar ahead of next week’s FOMC meeting. The willingness to begin discussing a tapering to the asset purchasing program coupled with positive stats would raise the prospects of a nearer-term move by the FED.
Away from the economic calendar, chatter from Capitol Hill will also need monitoring.
The Dollar Spot Index rose by 0.05% to end Wednesday at 90.120.
For the Loonie
It’s a particularly quiet day ahead on the economic data front, with no major stats to consider.
The lack of stats will leave the Loonie in the hands of crude oil prices and OPEC’s monthly report.
At the time of writing, the Loonie was down by 0.01% to C$1.2112 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.