The BoE Puts the Pound in the Spotlight

The Day Ahead:

For the EUR

It’s a quieter day ahead on the economic calendar.

German construction PMI figures for January and Eurozone retail sales figures for December will be in focus.

Following some quite dire retail sales figures from Germany, expect the Eurozone’s retail sales figures to draw the greatest interests.

Lockdown measures have extended into February raising the prospects of a continued decline in spending through the quarter.

From the ECB, therefore, expect the ECB Economic Bulletin to have the greatest influence on the day. How the ECB sees lockdown measures effecting growth for 2021 will be key.

At the time of writing, the EUR was down by 0.01% to $1.2035.

For the Pound

It’s a busier day ahead on the economic calendar. January construction PMI figures are due out ahead of the main event of the week.

Later today, the BoE will deliver its monetary policy decision.

While the markets are expecting the BoE to stand pat, any dissent or talk of the need for more support would weigh on the Pound.

January’s PMI numbers and service sector PMI figures in particularly were woeful. Hopes of a rebound supported by high vaccination rates across the UK may allow the BoE to sit back for now, however.

At the time of writing, the Pound was down by 0.05% to $1.3640.

Across the Pond

It’s a quieter day ahead on the economic calendar.

The all-important weekly jobless claims figures will be in focus later today.

Factory orders for December and 4th quarter unit labor costs and productivity numbers are also due out. These should have a relatively muted impact on the Greenback, however.

Away from the economic calendar, chatter from Capitol Hill will need continued monitoring.

At the time of writing, the Dollar Spot Index was down by 0.05% to 91.124.

For the Loonie

It’s yet another 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 market risk sentiment and crude oil prices on the day.

At the time of writing, the Loonie was down by 0.01% to C$1.2787 against the U.S Dollar.

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