USD
The US dollar initially sold off upon seeing mixed durable goods orders results and a sharp drop in pending home sales. Headline durable goods orders rose 1.8% versus the projected 1.6% rise while core durable goods orders fell 0.2% instead of increasing by 0.5%. US President Trump admitted that they’re not ready to announce tax reform plans until a proposal to replace Obamacare is made but said that he will announce something on infrastructure and security spending in his speech in front of the joint sessions of Congress today. US preliminary GDP data is also due and an upgrade from 1.9% to 2.1% is eyed.
EUR
The euro made a bit of a recovery against its peers when more polls indicated that Macron is advancing against Le Pen, thereby reducing odds of a Frexit. French consumer spending, CPI and GDP are lined up today and upbeat readings could mean more gains for the shared currency. In the meantime, headlines on Italy and Greece could also influence euro trading for the rest of the week.
GBP
The pound took some hits as Scottish referendum talks intensified. FM Sturgeon mentioned that they might call for a vote once the UK triggers Article 50 by March, as the nation actually voted to stay in the bloc during the EU referendum last year. There are no reports due from the UK today so Brexit talks in the House of Lords could also have an impact on pound price action.
CHF
The franc was mostly weaker against its peers but wound up advancing to its European rivals. There were no surprises in SNB member Zurbrugg’s speech yesterday while there are no reports lined up from the Swiss economy today.
JPY
The Japanese yen returned some of its recent gains on profit-taking and a bit of improvement in dollar demand. Data from Japan came in mixed as the preliminary industrial production report showed a surprise 0.8% dip versus the projected 0.4% increase while the retail sales report printed a 1.0% rise versus the estimated 0.9% gain. Japanese housing starts data is due next and a slower gain of 3.3% compared to the earlier 3.9% reading is eyed.
Commodity Currencies (AUD, NZD, CAD)
The comdolls moved mostly sideways or in reaction to currency-specific events as there were no major market events yesterday. New Zealand printed a wider trade deficit of 285 million NZD from the earlier 36 million NZD shortfall. Underlying Canadian inflation figures are up for release and this should provide some clues on how the BOC statement might sound like later this week.
By Kate Curtis from Trader’s Way
USD
The US dollar was off to a weak start in the absence of upgrades in its Q4 GDP reading of 1.9% but soon recovered upon seeing stronger Chicago PMI and Richmond manufacturing index readings. Dollar traders appear to be holding out for Trump’s speech during which is is set to unveil infrastructure spending and security spending plans. As for data, US personal spending and income, along with the core PCE price index, are lined up today. The ISM manufacturing PMI is also up for release and a rise from 56.0 to 56.2 is expected.
EUR
The euro was able to hold on to its recent gains as more polls indicated that French candidate Le Pen is losing her lead, thereby reducing odds of a Frexit. Medium-tier reports from France and Italy printed mixed results, with French consumer spending and GDP meeting expectations and Italian CPI beating consensus with a 0.3% gain. German preliminary CPI and Spanish manufacturing PMI are lined up today, along with German unemployment change data and final manufacturing PMI readings.
GBP
The pound slid lower to its peers when the odds of a Scottish referendum happening soon increased. UK manufacturing PMI is due today and a small dip from 55.9 to 55.7 to reflect a slower pace of industry growth is expected. A larger drop could confirm that Brexit risks are starting to take their toll on economic performance and set the tone for the rest of the PMIs due later in the week.
CHF
The franc continued to advance against its European counterparts and even chalked up some wins to the yen. The Swiss KOF economic barometer rose from an upgraded 102.0 reading to 107.2, outpacing the consensus at 102.2 to reflect a strong improvement in current conditions and outlook. The UBS consumption indicator is lined up today and a climb from the earlier 1.50 figure could be positive for the franc.
JPY
The Japanese yen gave up ground to most of its counterparts, except for the Canadian dollar. Japanese housing starts came in stronger than expected at 12.8% versus 3.3% while capital spending for the previous quarter rose 3.8% versus 0.6%. The final manufacturing PMI was downgraded from 53.5 to 53.3 instead of being upgraded to the 53.6 consensus.
Commodity Currencies (AUD, NZD, CAD)
The Loonie was the big loser for the day even with mixed underlying inflation reports, as traders appear to be bracing for a downbeat BOC statement later today. In their previous meeting, the central bank upgraded GDP forecasts but Governor Poloz warned that a rate cut is still on the table. Earlier today, Australia printed a stronger than expected 1.1% growth figure versus the 0.7% consensus while China’s PMI readings came in mostly stronger than expected. The official manufacturing PMI rose from 51.3 to 51.6 while the Caixin version improved from 51.0 to 51.7 versus the consensus at 50.9. RBNZ head Wheeler also has a speech coming up.
By Kate Curtis from Trader’s Way
USD
The US dollar continued to rally against its counterparts as traders focused on Fed rate hike talks and the fact that Trump sounded more presidential in his recent testimony in front of Congress. Economic data was also mostly stronger than expected, with the ISM manufacturing PMI up form 56.0 to 57.7 versus the 56.2 forecast. Core PCE price index came in line with expectations of a 0.3% gain while personal income picked up by 0.4% versus 0.3% to reflect stronger wage growth. Challenger job cuts and initial jobless claims data are due today.
EUR
The euro rallied on mostly upbeat data but wound up returning its intraday gains. German unemployment fell by 14K versus the projected 10K drop while final manufacturing PMI readings printed mixed results. German import prices, Spanish unemployment change, and flash CPI estimates are lined up today. Weaker inflationary pressures could underscore Draghi’s view that the pickup has just been temporary, keeping the ECB on its dovish stance.
GBP
The pound tanked across the board when the Brexit bill continued to encounter friction in the House of Lords. Amendments to the status of UK citizens in EU nations are being urged so this could mean a delay in Prime Minister May’s Article 50 timeline and more uncertainty. UK manufacturing PMI turned out weaker than expected by falling from 55.7 to 54.6 versus the estimated rebound. The construction PMI is due today and no change to the earlier 52.2 reading is eyed.
CHF
The franc consolidated to the euro but picked up against the pound and Japanese yen. Swiss manufacturing PMI climbed from 54.6 to 57.8 to reflect a much faster pace of industry expansion while the UBS consumption indicator improved from 1.38 to 1.43. Swiss GDP is due today and a 0.5% expansion is eyed.
JPY
The yen was in a weak spot against some of its counterparts as demand for the dollar picked up again. There were no major reports out of Japan then so the moves were mostly due to changing market sentiment. Japanese household spending and CPI figures are due in the next Asian session.
Commodity Currencies (AUD, NZD, CAD)
The Aussie was unable to gain much traction even after the GDP report printed a stronger 1.1% growth versus the projected 0.7% figure. China’s PMI readings also beat expectations, signaling stronger demand for Australia’s raw material products. The BOC kept rates on hold at 0.50% as expected while downplaying the recent increase in employment and inflation. Canada’s GDP is due next and a 0.3% expansion is eyed.
By Kate Curtis from Trader’s Way
USD
The dollar continued to advance against its peers as risk aversion came into play. Initial jobless claims came in stronger than expected and traders continue to expect strong jobs momentum, which could confirm a Fed rate hike in March. US ISM non-manufacturing PMI is lined up and no change to the earlier 56.5 figure is eyed. Traders are also likely to pay close attention to FOMC head Yellen’s testimony, along with speeches from other voting members Fischer, Evans, and Powell.
EUR
The euro continued to recover against most of its peers, particularly the comdolls as political risks seemed to subside. Still, it’s worth noting that reports showed Greece asking for financial assistance from the World Bank, which means that its debt troubles are far from over and that a default remains possible. The headline CPI flash estimate came in at 2.0% versus 1.9% while the core reading came in line with consensus at 0.9%. German retail sales and final services PMI readings are due.
GBP
The pound was still in a weak spot but it managed to advance against the commodity currencies as Prime Minister Theresa May seems less inclined to give in to any Brexit delays. UK construction PMI ticked up from 52.2 to 52.5 instead of holding steady. Services PMI is due today and a fall from 54.5 to 54.2 is eyed, likely resulting to some pound losses if the actual reading disappoints.
CHF
The franc had a mixed performance as it functioned mostly as a counter-currency. A bit of weakness can be observed as this Swiss currency has also been tracking the performance of gold, and the precious metal chalked up losses in recent sessions. Swiss retail sales showed a smaller than expected 1.4% fall versus the projected 2.0% slump. There are no reports due from the Swiss economy today.
JPY
The yen continued to stay strong against its peers, taking advantage of risk-off moves in the market. Recent reports turned out mixed, with household spending down 1.2% versus the projected 0.3% dip and the Tokyo core CPI posting a 0.3% drop in price levels instead of the estimated 0.2% uptick. The national core CPI printed a 0.1% increase instead of staying flat while Japanese consumer confidence slid from 43.2 to 43.1 instead of improving to 43.7.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were the big losers for the day as risk aversion came into play. Canada’s December GDP came in line with expectations of a 0.3% expansion but the oil-related currency dipped as natural gas storage in the US showed a buildup in stockpiles. In New Zealand, ANZ commodity prices recovered by 2.0%. Australia’s trade surplus came in short of estimates for January due to a 3% drop in exports.
By Kate Curtis from Trader’s Way
USD
The US dollar staged a strong rally against its peers late on Friday after FOMC policymakers confirmed the possibility of a March Fed rate hike. Yellen admitted that waiting too long to tighten could also be harmful for the economy and that they are simply waiting to see if inflation and employment come in line with their expectations before hiking. US factory orders data is due today and FOMC member Kashkari will deliver a speech.
EUR
The euro also advanced against its peers on Friday despite mixed data. German retail sales and the region’s overall consumer spending figure both missed expectations but final services PMI reports were slightly better than expected. Polls continue to show Macron leading against Le Pen, easing fears of a Frexit and further instability. Euro zone Sentix investor confidence and retail PMI are lined up today.
GBP
The pound was still mostly weaker on Friday after the services PMI printed a weaker than expected reading. The index fell from 54.5 to 53.3, lower than the expected 54.2 reading and indicative of a slower pace of expansion. BOE MPC member Hogg has a testimony due today but pound price action could be more sensitive to Brexit-related updates.
CHF
The franc chalked up some gains against its counterparts towards the end of the week as risk aversion was still in play, particularly in the European region. There were no reports out of the Swiss economy then and none are due today so market sentiment could keep pushing franc pairs around.
JPY
The yen had a mixed performance as the lack of top-tier data left it sensitive to currency-specific events. Earlier in the day, Japanese consumer confidence fell from 43.2 to 43.1 instead of improving to 43.7. There are no reports due from Japan today so yen pairs could keep reacting to market sentiment.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were the worst performers at the end of the week as the prospect of Fed tightening could dampen global demand and trade activity. Earlier today, Australia reported a 0.4% uptick in retail sales as expected and a 0.3% drop in its MI inflation gauge. The RBA statement is coming up in the next Asian session and a repeat of their earlier rhetoric could allow the currency to recover.
By Kate Curtis from Trader’s Way
USD
The US dollar held on to most of its recent gains as January factory orders came in slightly better than expected at 1.2% versus 1.1%. This marks the second consecutive positive reading, signaling strong manufacturing activity down the line. US trade balance is due today and a wider deficit of $47 billion is eyed.
EUR
The euro lost a lot of ground when news broke out that Juppe won’t be running for President in the upcoming elections. This led market watchers to fear that some of his supporters could give their votes to Le Pen, although her lead has been dropping against Macron. Euro zone retail PMI dipped from 50.1 to 49.9 to indicate contraction while the Sentix investor confidence index improved from 17.4 to 20.7.
GBP
The pound was also in a weak spot even though there were no major reports out of the UK economy yesterday. UK Halifax HPI is due today and a 0.4% rebound in house prices is eyed. Earlier today, the BRC retail sales monitor showed a 0.4% downtick, slower than the earlier 0.6% drop.
CHF
The franc seems to be resuming its slide against its peers, taking the brunt of the European uncertainty plays instead of the euro and the pound. SNB foreign currency reserves data is due today and an increase from the earlier 644 billion CHF figure could be evidence of slight intervention.
JPY
The yen had a mixed performance as it slid lower to the comdolls but advanced to the European currencies. There were no reports out of Japan yesterday and none are due today, indicating that the currency is reacting to country-specific events and market sentiment. Japanese final GDP and current account balance are due in the next Asian session.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were mostly weaker against the dollar but they did manage to stem their declines against the euro and the pound. Australian retail sales came in line with expectations of a 0.4% uptick and traders are awaiting a relatively upbeat RBA statement today. Canadian Ivey PMI is due next and a rise from 57.2 to 58.9 is eyed while New Zealand will have its GDT auction in the latter part of the US session.
By Kate Curtis from Trader’s Way
[B]USD[/B]
The US dollar held on to its recent gains, although the climb was slower. The headline trade balance showed a wider than expected deficit but components of the report indicated that both exports and imports picked up during the month. The ADP non-farm employment change reading is due today and this should provide some clues on how the Friday NFP might turn out. Analysts are expecting to see a 184K gain for the ADP report.
[B]EUR[/B]
The euro gave back some of its recent gains as German factory orders printed a surprise 7.4% slump versus the projected 2.5% decline. The final GDP reading for the region was unchanged at 0.4%. German industrial production and French trade balance are up for release today.
[B]GBP[/B]
The pound slid against most of its peers as the Halifax HPI printed a meager 0.1% uptick versus the projected 0.4% gain. The UK government annual budget release is scheduled today but traders could continue to look to Brexit-related headlines for cues.
[B]CHF[/B]
The franc was in a weak spot against its peers as uncertainties in the European region dampened demand for the Swiss currency. Swiss foreign currency reserves increased from 648B CHF To 668B CHF to show a bit of intervention. Swiss CPI is due today and a 0.2% uptick is eyed, an improvement over the earlier flat reading.
[B]JPY[/B]
The yen was able to hold on to its gains despite mixed data, as risk aversion was in play. The final GDP reading was upgraded from 0.2% to 0.3%, lower than the projected 0.4% expansion, while the current account balance printed a smaller surplus than expected. Average cash earnings data is due in the next Asian session.
[B]
Commodity Currencies (AUD, NZD, CAD)[/B]
The Loonie shed some ground as the Ivey PMI printed a drop from 57.2 to 55.0 to show a slower pace of growth. In New Zealand, the GDT auction showed a 6.3% drop in dairy prices, adding to the earlier 3.2% slide. Chinese trade balance was also weaker than expected at a 60 billion CNY deficit versus the projected 173 billion CNY surplus. Crude oil inventories data is due next.
[I]By Kate Curtis from Trader’s Way[/I]
USD
The US dollar raked in another round of gains when the ADP non-farm employment change figure beat expectations with a 298K versus the projected 188K figure. The previous report was also upgraded, hinting that the NFP could also have the same outcome. Initial jobless claims and import prices are up for release today but the focus is likely on the upcoming jobs release and next week’s Fed meeting.
EUR
The euro gave up ground to the dollar but tried to consolidate against its peers when medium-tier reports from the bloc came in mixed. German industrial production rebounded by 2.8% but the French trade balance printed a wider than expected deficit. The ECB decision is coming up today and even though no policy changes are expected, Draghi’s tone during the accompanying press conference could provide some clues on whether the central bank might be ready to taper or ease further.
GBP
The pound continued to slide in recent sessions even though there were no major reports out of the UK. There are no reports due today as well so pound price action could hinge on euro zone sentiment and overall market risk appetite.
CHF
The franc has been uneasy as it is also waiting for the ECB decision before deciding on a particular direction. Note that SNB officials have jawboned again recently and the foreign currency reserves showed a pretty notable increase, indicating that a bit of intervention may be in play. A dovish ECB statement could mean franc losses as well.
JPY
The Japanese yen lost ground to the dollar but managed to hold on to its gains against other counterparts as risk aversion stayed in play. Japanese average cash earnings posted a 0.5% gain versus the projected 0.3% figure while the previous reading was upgraded. Preliminary machine tool orders and the BSI manufacturing index are due next.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were the biggest losers for the day, particularly the Loonie which was bogged down by the large increase in US crude oil stockpiles. The EIA report showed a buildup of 8.2 million barrels versus the projected increase of 1.1 million barrels. Earlier today, the Chinese CPI fell below expectations at 0.8% versus the projected 1.9% figure and the earlier 2.5% gain. PPI was stronger than expected at 7.8%, though.
By Kate Curtis from Trader’s Way
USD
The US dollar is treading carefully ahead of today’s NFP release. Analysts are expecting to see a 188K gain, lower than the earlier 227K increase, but leading indicators such as the ADP non-farm employment change are hinting at an upside surprise. Average hourly earnings could show a 0.3% gain, higher than the previous 0.1% uptick. Revisions to earlier data could also have a large impact on dollar action.
EUR
The euro staged a strong rally during the ECB statemet, as the central bank kept rates unchanged as expected but upgraded growth and inflation forecasts. During the presser, Governor Draghi said that there was no more urgency to ease as deflation risks are lower, signaling a shift to a less dovish bias. He also said that he isn’t nervous about upcoming elections in Germany and France. French industrial production and Italian quarterly unemployment rate is due today.
GBP
The pound was able to trail the euro and cash in a few gains of its own as sentiment improved in the European region. There were no major reports out of the UK yesterday while today has the manufacturing and industrial production numbers due. Both are expected to post declines so a bit of pound weakness could be seen.
CHF
The franc was able to breathe a sigh of relief as the ECB didn’t sound too dovish this time. This eases the pressure on the SNB to intervene in the currency markets to keep the franc weak against the euro. Swiss jobless rate was unchanged at 3.3% as expected. There are no reports due from the Swiss economy today so the franc could move to the tune of risk sentiment.
JPY
The yen continued to slide against its peers as traders are moving their funds back to the US dollar. Japan’s BSI manufacturing index was weaker than expected at 1.1 versus the projected improvement from 7.5 to 8.4. There are no reports due from Japan today but the yen could be sensitive to dollar action after the NFP release.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were still the weakest performers for the day as risk aversion stayed in play. Chinese CPI was weaker than expected at 0.8% versus the projected 1.9% figure. PPI was better than expected at 7.8% versus 7.6% signaling strong inflationary pressures later on. Canadian jobs data is also due today, with the headline reading expected to show a 4.8K decline in hiring. The unemployment rate is expected to stay unchanged at 4.8%.
By Kate Curtis from Trader’s Way
USD
The US dollar was able to end the week strong as the NFP report printed a stronger than expected 235K increase versus the estimated 188K gain and the earlier month’s reading, which was upgraded from 227K to 238K. The unemployment rate dipped from 4.8% to 4.7% as expected but average hourly earnings was a notch short at 0.2% versus 0.3%. Only the Fed Labor Market Conditions Index is due today and traders are likely to position ahead of the FOMC rate increase.
EUR
The euro also kept up its climb until the end of the week as the shared currency got a strong boost from Draghi’s less dovish tone during the ECB presser earlier on. Actual economic data was mostly subpar as the German trade balance, French industrial production, and Italian quarterly unemployment rate missed expectations. On the other hand, German WPI was stronger than expected at 0.5%. Italian industrial production is due, along with another speech by Draghi.
GBP
The pound was in a weak spot as European flows went to the euro and away from the UK currency. UK manufacturing production was weaker than expected with a 0.9% slide versus the projected 0.6% dip. Goods trade balance showed a smaller than expected deficit, though, which could be positive for trade and overall growth. There are no reports due from the UK today.
CHF
The franc had a mixed performance as it reacted mostly to country-specific events in the absence of top-tier reports from Switzerland. There are still no reports due from Switzerland today so risk sentiment could push the franc around.
JPY
The yen gave up ground to its peers as US bond yields rose and revived demand for the dollar. Over the weekend, Japan’s core machinery orders report printed a weaker than expected 3.2% slide versus the projected flat reading while PPI came in at 1.0% as expected. Tertiary industry activity is due next and a 0.2% uptick is eyed.
Commodity Currencies (AUD, NZD, CAD)
Canada printed a stronger than expected employment change figure of 16.3K versus the projected 0.6K gain. This was enough to bring the unemployment rate down from 6.8% to 6.6%. Over the weekend, New Zealand reported a 0.2% uptick in its food price index, slower than the earlier 2.8% gain. There are no other reports due from the comdolls for today, but Chinese industrial production numbers are lined up for the next Asian session.
By Kate Curtis from Trader’s Way
USD
The dollar is tossing and turning ahead of the FOMC statement this week and the lack of top-tier data yesterday kept price action subdued. US PPI figures are due today, with the headline reading expected to show a 0.1% uptick and the core figure projected to come in at 0.2%.*
EUR
The euro gave back some of its recent gains when polls reflected a lead by French presidential candidate Le Pen once more. Draghi didn’t talk about monetary policy plans in his latest testimony, choosing to highlight the need to ramp up production growth in the euro area instead. German ZEW economic sentiment data is due today, along with euro zone industrial production data.*
GBP
There was a lot going on in the UK but the pound barely reacted to the news as it seemed to be pushed and pulled by opposing forces. For one, the House of Commons gave the green light for PM May to invoke Article 50 without giving lawmakers a larger say in the Brexit bill. Meanwhile, Scottish First Minister Sturgeon confirmed that she will seek permission to hold another referendum on independence by autumn 2018. Only the CB leading index is due from the UK today.
CHF
The franc clawed its way back against its peers as the lack of ECB dovishness meant lower odds of SNB intervention. There were no reports out of the Swiss economy yesterday and none are due today so traders could keep pricing in expectations for the upcoming SNB decision.
JPY
The yen had a mixed performance as the lack of top-tier data left pairs trading on country-specific events and market sentiment. Japanese tertiary industry activity fell flat instead of showing the projected 0.2% uptick. The BOJ decision is also coming up and traders might be positioning for this event.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were still in a weak spot, as traders are anticipating slower global demand for commodities once the Fed increases borrowing costs. Economic data from China was mixed, with retail sales falling short of estimates at 9.5% versus the projected 10.5% reading. Industrial production improved to 6.3% while fixed asset investment came in stronger than expected at 8.9% versus 8.2%.
By Kate Curtis from Trader’s Way
USD
The US dollar edged slightly higher against its peers as traders are pricing in expectations for a Fed rate hike in today’s FOMC statement. Market watchers will also pay close attention to updated growth and inflation forecasts, as well as the tone of Yellen in the presser. These should provide clues on whether or not three rate hikes can be implemented this year. PPI readings came in stronger than expected with 0.3% gains for both headline and core figures.
EUR
The euro gave back more of its recent gains as political headlines became the main driver of price action again. Polls are showing a lead for Le Pen while the formal investigation on Fillon could dampen his odds of winning, perhaps even forcing him to quit the race. German ZEW economic sentiment and euro zone industrial production fell short of estimates, and Italian retail sales are due next.
GBP
The pound was off to a rough start but eventually recovered against its peers. There were no major reports out of the UK economy yesterday while today has the jobs report on tap. Claimant count could rise by 3.2K, erasing part of the earlier 4.6K drop, while the unemployment rate could stay unchanged at 4.8%. The average earnings index is expected to slide from 2.6% to 2.4%.
CHF
The franc advanced to the pound and the euro but gave up ground to the yen and dollar. There were no reports out of the Swiss economy yesterday while today has the PPI lined up. This is expected to show another 0.4% uptick and ease deflation concerns in the area.
JPY
The yen had a mixed performance as it reacted mostly to country-specific events. However, it’s worth noting that rising US bond yields in anticipation of Fed rate hikes is dampening demand for Japanese bonds and the yen. Traders are also likely positioning or holding out for the BOJ statement later this week.
Commodity Currencies (AUD, NZD, CAD)
The comdolls held their ground even with dollar strength in recent trading as the crude oil market enjoyed a couple of positive updates. One was that the pickup in Saudi’s production was merely taken to domestic refineries instead of being sold in the global market and that the API report showed a 0.5M reduction in stockpiles. The EIA crude oil inventory report is due next, along with the New Zealand GDP which might show a slower 0.7% growth figure.
By Kate Curtis from Trader’s Way
USD
The Fed hiked interest rates by 0.25% as expected but the dollar sold off as traders booked profits and bulls seemed unimpressed by the lack in conviction. Still, Yellen said that it makes sense to keep hiking at a gradual pace as the economy continues to show improvements, but added that they have yet to adjust to incoming data and fiscal policy reform. The dot plot forecast still indicated three rate hikes for the year but one voting member dissented in favor of keeping rates unchanged this time. Building permits and housing starts, along with the Philly Fed index and initial jobless claims, are due today.
EUR
The euro had a mixed performance as it took advantage of dollar weakness but gave up ground to the yen and commodity currencies. Italian retail sales and the region’s unemployment rate came in stronger than expected but political headlines seemed to be the main driver of price action. Final CPI readings are due today and no changes to the headline and core readings are eyed.
GBP
The pound barely got a boost from stronger than expected UK jobs data, even as the economy added 11.3K jobs in February versus the projected 3.2K reduction. The unemployment rate improved from 4.8% to 4.7% but the average earnings index slumped from 2.6% to 2.2%, lower than the 2.4% consensus, to hint that consumer spending would likely take a hit in the coming months. The BOE decision is scheduled today but not actual policy changes are eyed.
CHF
The franc also had a mixed performance as it reacted to country-specific events while traders are holding out for the SNB decision today. No actual policy changes are expected but the usual jawboning spiel could be in play as SNB foreign currency reserves increased recently.
JPY
The yen took advantage of dollar weakness and risk aversion to advance against its rivals. There were no major changes to policy in today’s BOJ monetary policy announcement so yen bulls were able to rest easy. The press conference is still coming up next.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were able to get back on their feet, thanks to the dollar selloff and a reduction in EIA crude oil stockpiles. New Zealand reported 0.4% GDP growth in Q4 versus the projected 0.7% expansion and the earlier 1.1% growth figure. Australia’s jobs data was weaker than expected as the economy lost 6.4K jobs versus the estimated 16.3K gain and the unemployment rate rose from 5.7% to 5.9%.
By Kate Curtis from Trader’s Way
USD
The US dollar had a mixed performance as it reacted to country-specific events, particularly in the European region. Data came in mixed as well, with initial jobless claims, housing starts, and the Philly Fed index beating expectations while building permits fell short. The preliminary UoM consumer sentiment index is due today and a rise from 96.3 to 97.1 is eyed.
EUR
The euro was off to a weak start on political headlines but it was able to get back on its feet when a couple of ECB officials had upbeat remarks. For Nowotny, the central bank might consider increasing the deposit rate before making adjustments to the benchmark rate and asset purchases. Meanwhile, Praet acknowledged the recent improvements in the economy but clarified that the ECB might not be ready to reduce easing yet. Final CPI readings were unchanged and only the region’s trade balance is due today.
GBP
The pound shot higher after the BOE decision because, even though the central bank refrained from adjusting policy, the minutes revealed that Forbes voted for a hike. This signals a shift in the bias of the committee, although there’s a lot of work to be done before any actual tightening move is implemented. There are no major reports due from the UK today.
CHF
The franc barely reacted to the SNB decision as the central bank refrained from making any major changes or big statements. There are still no reports due from Switzerland today so franc pairs could move to currency-specific events or data.
JPY
The yen’s performance was also a mixed bag as it gave up ground to the European currencies but managed to stay afloat against the comdolls. The BOJ didn’t announce any key changes in their policy decision and there are no reports due today so market sentiment could stay in play.
Commodity Currencies (AUD, NZD, CAD)
The comdolls edged slightly lower to the dollar and consolidated to the yen as traders appear to be waiting for the next big catalyst. Jobs data from Australia turned out weaker than expected as the economy lost 6.4K positions instead of gaining the projected 16.3K while the jobless rate rose from 5.7% to 5.9%. Canadian manufacturing sales data is due today.
By Kate Curtis from Trader’s Way
USD
The US dollar continued to retreat against most of its counterparts as traders kept booking profits off their recent long positions in reaction to a less hawkish than expected Fed announcement. There are no major reports due from the US economy today but President Trump has a speech lined up so additional volatility could be in the cards.
EUR
The euro gave up some ground as traders turned their attention to French election updates once more. Still, it’s worth noting that a couple of ECB policymakers echoed the less dovish rhetoric of ECB head Draghi during the other week’s ECB presser. German PPI is due today, along with a speech by German central bank head Weidmann. Another round of upbeat remarks on economic performance could renew euro strength.
GBP
The pound was able to hold on to some of its gains as traders shifted their stance when a BOE member recently voted to hike interest rates. There were no reports out of the UK on Friday while today has a speech by MPC member Haldane. Brexit updates are likely to be the main movers for the next few days as the government moves closer to invoking Article 50.
CHF
The franc moved mostly sideways on Friday after making a few big moves earlier in the week. The lack of ECB dovishness prevented the SNB from being overly dovish themselves, although Chairperson Jordan reiterated that they can still ease or intervene if needed. There are no reports due from the Swiss economy today.
JPY
The Japanese yen regained ground on Friday as bond yields continued to favor the currency. Japanese banks are closed for a holiday today, though, so volatility could be low and yen pairs could wait for clues from market sentiment instead.
Commodity Currencies (AUD, NZD, CAD)
The comdolls staged a late recovery in the week but were able to end mostly in the green against the dollar. There are no major reports from the comdoll economies at the start of the week but market sentiment could still push these pairs around.
By Kate Curtis from Trader’s Way
USD
The dollar regained a bit of ground against its peers even though there were no major reports out of the US economy. Formerly dovish member Evans acknowledged that the economy is doing better and that three rate hikes are possible this year while dissenter Kashkari said that he’s not opposed to tightening if data shows more improvement or inflation reaches the 2% target. FOMC member Dudley is set to give a speech today while the US will print its current account balance.
EUR
The euro was in a weak spot ahead of the French election debates but soon regained ground when the polls handed victory to Macron afterwards. German PPI turned out weaker than expected with a 0.2% uptick versus the projected 0.4% gain. There are no reports due from the euro zone today so election updates could influence price action.
GBP
The pound tossed and turned on rumors and confirmation that UK PM May will invoke Article 50 by March 29. This marks the official start of Brexit negotiations as EU officials have confirmed that they will respond swiftly. UK CPI reports are due today, with the headline figure slated to rise from 1.8% to 2.1% and the core figure expected to tick up from 1.6% to 1.7%. Keep in mind, however, that wage growth has lagged behind so strong gains in prices could dampen consumer spending later on.
CHF
The franc was unable to establish a clear direction in recent trading as it functioned mostly as a counter currency. Swiss trade balance and SECO economic forecasts are up for release today and positive readings could provide the currency some support.
JPY
The yen also reacted to country-specific events instead of establishing a clear direction of its own. There were no reports out of Japan yesterday since banks were closed for the holiday and none are due today, which suggests that market sentiment could be the main driver.
Commodity Currencies (AUD, NZD, CAD)
Comdolls gave back their recent gains to the dollar as risk aversion popped its head back in the markets. The RBA minutes indicated that policymakers were concerned about rising house prices and the HPI indicated a 4.1% gain in Q4 versus the projected 2.4% increase. Canadian retail sales figures are due next and both the headline and core figure are expecting strong rebounds. New Zealand is set to have its GDT index in the late US session.
By Kate Curtis from Trader’s Way
USD
The US dollar gave up ground to its counterparts as equity indices closed around 1% lower for the day. Only the current account balance was released and this showed a smaller deficit of $112 billion USD. Existing home sales data is due today and a fall to 5.59M is eyed, but this still isn’t expected to have a huge impact on dollar action.
EUR
The euro advanced once more as another poll gave the lead to Macron versus other candidates like Le Pen and Fillon. There were no major reports out of the region yesterday but the improving sentiment and the change in monetary policy stance of the ECB continue to keep the shared currency supported. Euro zone current account balance is due today.
GBP
The pound also raked in gains after printing upbeat CPI readings. Headline CPI was up from 1.8% to 2.3%, outpacing the 2.1% forecast, while core CPI rose from 1.6% to 2.0% versus the 1.7% consensus. Underlying figures also beat expectations, except for the PPI input figure which fell 0.4%. There are no major reports from the UK today.
CHF
The franc moved mostly sideways as traders are still waiting for the next round of major catalysts. Swiss trade balance was weaker than expected at 3.11B CHF versus the projected 3.85B CHF surplus. There are no reports due from Switzerland today.
JPY
The yen managed to maintain its lead, even against the stronger European currencies, as risk aversion remained in play. Japan’s trade balance turned out better than expected at 0.68T JPY versus the projected 0.55T JPY surplus. The all industries activity index posted a 0.1% uptick as expected.
Commodity Currencies (AUD, NZD, CAD)
Canada’s retail sales reports turned out stronger than expected but the oil-related Loonie was unable to shake of the bearish vibes from oil prices. Even though Russia expressed willingness to cooperate with a potential extension of the output deal until the end of the year, the API report’s larger than expected buildup of 4.53 million barrels in stockpiles brought oversupply concerns back in play. New Zealand reported a 1.7% rebound dairy prices during the latest auction but falling iron ore prices hit the Aussie hard. The RBNZ decision is coming up next.
By Kate Curtis from Trader’s Way
USD
The US dollar sank against its peers as the upcoming vote on the healthcare bill could prove to be a crucial moment for the Trump administration. Equities have been on the decline for the past few days as investors continue to doubt the administration’s resolve, although economic data has been mostly in line with expectations. Initial jobless claims are due today, along with a speech by Yellen.
EUR
The euro was mostly weaker against its peers when news of a terror attack in London broke out. Euro zone current account balance turned out weaker than expected and there are no major reports due today so market sentiment could stay in play.
GBP
The pound got hit hard by reports of a terror attack in the Houses of Parliament towards the end of the London session. There have been no major reports out of the UK yesterday while today has the retail sales figure due. Weak wage growth combined with higher domestic inflation probably weighed on consumer spending but analysts are expecting to see a 0.4% rebound after the earlier 0.3% decline.
CHF
The Swiss franc had a mixed performance as it reacted mostly to country-specific data and other headlines. The SNB Quarterly Bulletin was released but this didn’t contain any surprises enough to move the franc. There are no major reports due from the Swiss economy today but SNB member Maechler has a speech lined up.
JPY
The yen was the big winner in recent trading sessions as it took advantage of risk-off flows and anti-dollar sentiment on concerns about the healthcare vote. There were no major reports out of Japan then and none are due today, but additional volatility is expected in the US session.
Commodity Currencies (AUD, NZD, CAD)
The comdolls lost a lot of ground on market jitters, both weighed by concerns ahead of the Obamacare vote and the risk aversion from the terror attack in London. The EIA report confirmed that stockpiles rose more than expected, keeping oil oversupply concerns in play. In New Zealand, the RBNZ kept rates on hold as expected but sounded less downbeat in brushing off the recent GDP disappointment and affirming that inflation could return to their target band in the medium-term.
By Kate Curtis from Trader’s Way
USD
The US dollar failed to establish a clear direction in recent trading sessions as Congress decided to delay the vote on the healthcare bill. They need 216 votes to gain a simple majority and get Obamacare repealed, but the Freedom Caucus is saying that they cannot make a decision based on the current form of the bill. Data turned out mixed, as initial jobless claims posted a slightly higher 258K increase while new home sales jumped from an upgraded 558K reading to 592K versus the projected 566K figure. Durable goods orders data are due but traders might pay closer attention to the goings-on in Congress.
EUR
The euro was able to benefit from risk-off flows, especially since election jitters appear to be fading. Euro zone consumer confidence improved from -6 to -5 but the GfK German consumer climate index fell from 10.0 to 9.8 instead of improving to the projected 10.1 reading. Flash PMI readings from Germany and France are lined up today, and more improvements could remind traders of the ECB’s less dovish stance.
GBP
The pound was also able to stay afloat, thanks to stronger than expected UK retail sales data. Consumer spending advanced 1.4% versus the projected 0.4% gain but the earlier reading was downgraded to show 0.5% drop. There are no major reports due from the UK today so Brexit headlines could be the main driver for the pound.
CHF
The franc had a mixed performance as it reacted to mostly currency-specific data in the absence of top-tier data from Switzerland. It gained ground to the comdolls but was weaker against the Japanese yen as risk aversion was present. There are no reports due from Swizterland today.
JPY
The yen chalked up another strong trading day as it took advantage of the anti-dollar and risk-off market sentiment. Japanese flash manufacturing PMI fell from 53.3 to 52.6 versus the projected rise to 53.5 but the yen is banking on its safe-haven status so far. There are no other reports due from Japan today.
Commodity Currencies (AUD, NZD, CAD)
The comdolls shed a lot of ground to their peers as risk aversion extended its stay in the markets. Canadian CPI reports are up for release today, with the headline figure expected to fall from 0.9% to 0.2% and the core CPI slated to fall from 0.5% to 0.1%.
By Kate Curtis from Trader’s Way
USD
The US dollar is on weak footing after Congress decided to withdraw the healthcare bill, knowing that they didn’t have enough votes to repeal Obamacare. This deals a huge blow of confidence to the Trump administration as investors start to doubt that they can push the rest of their agenda across. US headline durable goods orders came in stronger than expected with a 1.7% gain versus the projected 1.1% increase while the core figure came in line with estimates of a 0.4% uptick. FOMC member Kaplan has a speech lined up.
EUR
The euro extended its gains against its peers when PMI readings from Germany and France turned out stronger than expected and indicated a faster pace of industry expansion across the board. German Ifo business climate data is due today and an improvement from 111.0 to 111.2 is eyed.*
GBP
The pound was also on strong footing last week after the UK printed strong CPI and retail sales figures. However, BBA mortgage approvals turned out weaker than expected at 42.6K versus 44.9K on Friday. There are no reports due from the UK today and the focus turns to the upcoming Article 50 date on March 29.
CHF
The franc had a mixed performance as it weakened to the yen and euro but advanced against comdolls and the dollar. There were no reports out of the Swiss economy last Friday and none are due today so market sentiment could push franc pairs around, along with country-specific events.
JPY
The yen was still the king of pips at the end of the week as it took advantage of risk-off flows and anti-dollar moves. Japanese manufacturing PMI turned out weaker than expected as it fell from 53.3 to 52.6 versus the 53.5 forecast. There are no reports due from Japan today.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were mostly on weaker footing but managed to regain some ground to the dollar. Canadian CPI readings were mostly unchanged, with the headline figure up 0.2% and the core figure up 0.4%. There are no reports due from the comdoll economies today.
By Kate Curtis from Trader’s Way