mask It’s a Busy Day Ahead, with Economic Data Putting the Majors in Focus

30/ 06/ 2020

It’s a Busy Day Ahead, with Economic Data Putting the Majors in Focus

Daily Update - 30th June 2020

Yesterday’s Market

  • USD Pending Home Sales (MoM) (May)
  • CNY Manufacturing PMI (Jun)

Yesterday’s Explained

The Euro appreciated against the dollar yesterday despite positive Pending Home Sales report for the month of May from the US which measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.

In the Data for China which provides an early indication each month of economic activities in the Chinese manufacturing sector which also came positive and should boost the confidence of investors.

                         

Today’s Market

  • GBP GDP (QoQ) (Q1)
  • EUR CPI (YoY) (Jun)
  • CAD GDP (MoM) (Apr)
  • USD CB Consumer Confidence (Jun)
  • JPY Tankan Large Manufacturers Index (Q2), Tankan Large Non-Manufacturers Index (Q2)
  • CNY Caixin Manufacturing PMI (Jun)

Today’s Focus

For the EUR, it’s a busy day ahead on the economic calendar. French consumer spending figures for May and prelim June inflation figures from France, Italy, and the Eurozone are due out. Finalized 1st quarter GDP numbers for Spain are also in focus. We would expect consumer spending figures from France to have the greatest influence, however. Consumer spending will be key to any economic recovery and rebound in service sector activity. As these are figures for May, any impact on the EUR may be short-lived, however. Away from the economic calendar, the markets will need to continue to monitor COVID-19 and chatter from Trump on tariffs.

For the Pound, it’s also a relatively busy day ahead on the economic calendar. Finalized 1st quarter GDP and business investment numbers are due out. Barring a material upward revision to prelims, the stats should have a muted impact on the Pound. On the monetary policy front, MPC members Haldane and Cunliffe are due to speak later, which will draw attention. Expect updates from Brexit talks and market risk sentiment to be the key drivers on the day.

Across the Pond, it’s a relatively busy day on the U.S economic calendar. Key stats include June’s Chicago PMI and consumer confidence figures, with April house prices figures also due out. We would expect the CB Consumer Confidence Figures to have the greatest influence. In June, while lockdown measures eased, protests over the unlawful killing of George Floyd swept across the country. For the U.S economy, a bounce-back in consumer confidence and spending is a must. Last week’s pause by a number of U.S states in reopening may limit the effects of any positive numbers, however. Trump and COVID-19 news will also need monitoring throughout the day.