Economic Data, the FED, and Capitol Hill and U.S Stimulus News Puts the Dollar in the Spotlight

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Germany’s GfK Consumer Climate figures for February will be in focus later this morning.

Following news of vaccine supply shortages and extended lockdown measures, a marked fall in consumer confidence would weigh on the EUR.

Away from the economic calendar, expect COVID-19 updates to continue to influence.

At the time of writing, the EUR was flat at $1.2160.

For the Pound

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

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

COVID-19 news will also influence, however. A continued rise in vaccination rates and fall in infection rates should support the Pound. Any further updates on the new strains and effectiveness of vaccines will also need monitoring.

At the time of writing, the Pound was down by 0.04% to $1.3731.

Across the Pond

It’s a relatively busy day ahead on the economic calendar. December durable goods and core durable goods orders are due out of the U.S later today.

Expect the core durable goods figures to have the greatest impact, with forecasts positive for riskier assets.

Late in the day, the FED will also deliver its first monetary policy decision of the year. With the FED expected to leave rates unchanged, expect the rate statement and press conference to be the key drivers.

Away from the economic calendar, chatter from Capitol Hill and COVID-19 updates will also remain in focus, however.

At the time of writing, the Dollar Spot Index was up by 0.06% to 90.223.

For the Loonie

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

The lack of stats will leave the Loonie in the hands of the API and EIA crude oil inventory numbers for the week.

Away from the economic calendar, sentiment towards U.S stimulus will also influence on the day.

At the time of writing, the Loonie was down by 0.16% to C$1.2714 against the U.S Dollar.