The US dollar was in a weak spot against its peers as the FOMC minutes focused on the idea of adjusting the balance sheet and the fact that fiscal stimulus might not take effect until next year, something that was underscored by Speaker Paul Ryan who said that tax reform could take longer than the healthcare overhaul. Data came in mixed, as the ADP non-farm employment change reading came in at 263K versus 184K while the ISM non-manufacturing PMI dipped from 57.6 to 55.2
The euro had a mixed performance as it reacted mostly to currency-specific events. Economic data turned out mostly weaker than expected as the final services PMI readings were downgraded. German factory orders data is due today, along with the ECB meeting minutes.
The pound rebounded against its peers as the UK services PMI climbed from 53.3 to 55.0, higher than the consensus at 53.5. Only the housing equity withdrawal report is lined up next and UK manufacturing production and a speech by BOE Governor Carney are lined up on Friday.
The franc also had a mixed performance as it functioned mostly as a counter currency. There were no reports out of the Swiss economy yesterday and only the CPI is up for release today. A 0.2% uptick is eyed, slower than the earlier 0.5% increase.
The Japanese yen gave up some gains against its counterparts earlier in the day but later on resumed their climb as US bond yields declined. The Japanese consumer confidence index is still up for release and a climb from 43.1 to 43.5 is expected.
Commodity Currencies (AUD, NZD, CAD)
The comdolls slid lower to the yen and the European currencies as risk aversion remained in play. Crude oil inventories increased by 1.6 million barrels instead of falling by 0.1 million barrels. The Chinese Caixin services PMI dropped from 52.6 to 52.2 instead of improving to the 53.2 consensus. Canadian building permits is due next.