Economic Data Puts the EUR and USD in Focus, with Italian Politics and COVID-19 to Test the EUR

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. German GDP numbers for the year are due out today. With ECB President Lagarde standing by the ECB economic projections, today’s figures will give some idea of what to expect for the Euro bloc.

The ECB monetary policy meeting minutes will also garner some attention this afternoon.

Away from the economic calendar, expect COVID-19 news updates and Italian politics to also influence.

To support the optimistic economic outlook, EU member states will need to ramp up vaccination rates near-term.

From Italy, uncertainty over the government coalition will be another test.

At the time of writing, the EUR was down by 0.06% to $1.2150.

For the Pound

It’s another particularly quiet day ahead on the economic calendar. There are no material stats to provide the Pound with direction.

A lack of stats will continue to leave the Pound in the hands of COVID-19 news.

At the time of writing, the Pound was down by 0.03% to $1.3635.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar. The weekly jobless claims figures are due out later today.

Expect plenty of interest in the first set of numbers of the year. Influence on market risk appetite will depend upon stimulus updates from Capitol Hill.

Away from the economic calendar, expect news from Capitol Hill and COVID-19 news to remain the key driver near-term.

At the time of writing, the Dollar Spot Index was up by 0.11% to 90.451.

For the Loonie

It’s a quiet day on the economic data front, with no material stats due out to provide the markets with direction.

The lack of stats will leave the Loonie in the hands of market risk sentiment on the day.

A sizeable stimulus package would support further upside for crude oil prices and the Loonie near-term.

At the time of writing, the Loonie was up by 0.02% to C$1.2696 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.