It was a particularly busy day on the economic calendar in the Asian session this morning.
Japan’s September inflation had a limited impact early in the day.
However, the main focus was economic data from China. Key statistics included GDP figures for the third quarter and industrial production figures for September.
September’s fixed asset investment and retail sales figures had a smaller impact on the day.
The annual inflation rate fell from 0.3% to 0.2% in September, according to data released by the Ministry of the interior and communications. Economists had forecast an annual inflation rate of 0.4%. The annual core inflation rate in September was 0.3%, in line with the forecast, down from 0.5% in August.
The Japanese yen has shifted from 108,568 euros to 108,554 euros since the data were released. At the time of writing, the Japanese yen rose 0.01% to 108.65 euros against the us dollar.
The Chinese economy grew by 6.0% in the third quarter, on an annualized basis, which was worse than the forecast of 6.1%. In the second quarter, the economy grew by 6.2%. Quarter-on-quarter, the economy grew by 1.5%, which was in line with forecasts. The economy grew 1.6% in the SECOND quarter.
While year-on-year GDP was negative, industrial production jumped in September. Year-on-year, production grew by 5.8%, well ahead of the projected 5.0% growth. In August production increased by 4.4%
The Aussie dollar moved from $ 0.68241 to a high $ 0.68377 after releasing the figure. At the time of writing, the Australian dollar was up 0.13% at $0.6833.
The Kiwi dollar rose 0.36% to $0.6370.
It’s another quiet day ahead on the economic calendar. There are no material statistics from the Eurozone to provide EUR with direction.
The lack of data will leave the Euro in the hands of Brexit chatter and market sentiment towards the global economy.
Morning statistics from China and the retention of tariffs on Chinese goods will test the risk of sentiment, as will the threat of tariffs on EU goods.
With a parliamentary vote tomorrow, however, it will be Brexit front and centre on the day.
At the time of writing, the Euro was down 0.03% at $1,1122.
It’s also a quiet day ahead, on the data front. There are no material statistics to provide the pound with direction on the day.
The lack of stats leaves Brexit in focus as the UK Parliament prepares to vote on the latest deal. Uncertainty over whether Parliament will push through the deal could limit any upside to the pound, however.
News hit the wires on Thursday that the DUP were going to vote against the latest deal in Parliament on Saturday. It remains unclear whether Boris Johnson has managed to get the support he needs for a deal that would ultimately avert a General election and a possible hard Brexit. There has also been talk of a second referendum in recent weeks.
At the time of writing, the pound was down 0.25% at $1.2859.
It’s a quiet day ahead on the economic calendar. without any material statistics from the US to provide direction.
The lack of statistics will leave geopolitics in the spotlight for the day. Expect some up on the dollar if there is any negative chatter on Brexit.
While the US and China have made progress in trade talks, the fact that trade tariffs remain negative. Trump is also expected to start threatening the EU with tariffs, which will also be a test for markets.
The US-China trade war has been negative for the dollar, it would be a different story if a US-EU trade war ensued.
The dollar spot index rose 0.01% to 97.620 at the time of writing.
It’s also a quiet day on the economic calendar, with no material statistics from Canada to provide direction for Loonie.
This morning statistics from China and risk sentiment across the US session will provide direction. China’s statistics could be worse, which should be considered positive.
Loonie was up 0.01% at C $ 1.3136, against the us dollar, at the time of writing.
This article was originally posted on FX Empire
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