The dollar had a volatile run during the release of the Trump administration’s tax reform plan but ended the day mostly unchanged. Up ahead, US initial jobless claims, durable goods orders, and pending home sales data are due next, although traders could hold out for the advanced GDP release on Friday.


The euro continued to advance against its peers on strengthening expectations that Macron could win the French presidency. There were no reports released from the euro zone yesterday while today has the German preliminary CPI and GfK consumer climate index. Traders are expecting to see a 0.1% dip in German price levels and an improvement in the index from 9.8 to 9.9. The ECB statement is also coming up and less dovish remarks could extend the euro’s gains.


The pound also extended its gains against its rivals despite the lack of top-tier data from the UK. Only the CBI realized sales index is due today and a dip from 9 to 6 is eyed, but a stronger than expected result could assure traders of the resilience of the UK economy.


The franc had a mixed performance as it weakened to its European counterparts but strengthened against the rest of its peers. Data from Switzerland was mixed as the Swiss UBS consumption indicator improved from 1.45 to 1.50 while the Credit Suisse Economic Expectations index fell from 29.6 to 22.2. Swiss trade balance is due next and a smaller surplus of 3.01 billion CHF is expected.


The yen tossed and turned but ultimately recovered some of its losses after US bond yields failed to surge on the tax reform announcement. Earlier today, the BOJ refrained from making any adjustments in its monetary policy and interest rates as expected. BOJ Governor Kuroda’s press conference is still coming up.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were among the weakest performers, particularly the Loonie which was hit by mixed Canadian retail sales and warnings of a property bubble from the CHMC. Australia’s quarterly CPI also came in a notch below expectations at 0.6%. On a less downbeat note, crude oil inventories posted a larger than expected draw of 3.6 million barrels.

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