Dollar pairs were stuck in consolidation for the most part, as traders have already priced in expectations for the weak CPI readings. Headline and core CPI showed 0.1% gains versus the projected 0.2% increase for both figures. For today, industrial production and capacity utilization numbers are due, along with the Empire State manufacturing index and the preliminary UoM consumer sentiment index.
The euro calmed down from its previous day’s selloff, as the headline CPI was revised to show a flat reading from the previous 0.1% drop. Only the euro zone trade balance is up for release today.
The pound was slightly weaker after the BOE interest rate decision even though the central bank kept rates on hold as expected. Policymakers highlighted the risks of a potential Brexit on growth and monetary policy. The UK construction output report is due today and a flat reading is eyed.
The franc was stuck in consolidation against the dollar but was able to rake in some gains against the higher-yielders. Swiss PPI came in flat instead of showing the estimated 0.2% dip. There are no reports due from the Swiss economy today.
The yen regained ground on risk aversion, as central banks in Asia such as that of Singapore shifted to an easing bias. There were no reports out of Japan then and none are due today, keeping market sentiment in play.
Commodity Currencies (AUD, NZD, CAD)
The Australian dollar made a strong rally after the jobs report revealed that the economy added 26.1K jobs in March, enough to bring the jobless rate down to 5.7%. The Loonie was still weaker on reports that Iran boosted production to 600,000 barrels per day. Chinese GDP, industrial production, retail sales, and fixed asset investment data are due today.