The US dollar had a mixed run as it reacted mostly to currency-specific data and was tossed around by Fed commentary. A couple of Fed officials warned that weak inflation should keep gradual tightening in place while Bullard emphasized that the balance sheet runoff should start this fall. The ADP report showed a weaker than expected 178K gain in hiring versus the projected 187K figure but the previous reading saw a large upgrade from 159K to 191K. Challenger job cuts and the ISM non-manufacturing PMI are due today.


The euro carried on with its climb to the dollar but at a slower pace. The Spanish unemployment change report showed a smaller than expected 26.9K drop in joblessness versus the projected 66.5K drop and the earlier 98.3K reduction. Final services PMI readings are due today, along with the region’s retail sales figure.


The pound struggled to hold its ground after the UK construction PMI posted a steeper than expected fall from 54.8 to 51.9. The BOE is set to make their policy statement today and also release its MPC meeting minutes. Three members voted for a hike in the previous meeting so traders are eager to find out if this hawkish bias is sustained. The BOE Inflation Report and UK services PMI are also lined up.


The franc had a mixed run but was mostly in a weak spot against its counterparts. The SECO consumer climate index improved from -8 to -3 while Swiss retail sales posted a stronger than expected 1.5% year-over-year rebound. The manufacturing PMI was also stronger than expected as it rose from 60.1 to 60.9 instead of falling to 58.9. There are no reports due from the Swiss economy today.


The yen also had a mixed round as it reacted to market sentiment and currency-specific factors. There were no reports out of Japan then and none are due today so global bond yields and overall risk sentiment could continue pushing yen pairs around.

Commodity Currencies (AUD, NZD, CAD)

The EIA reported a draw of 1.5 million barrels in crude oil stockpiles, smaller than the estimated reduction of 3.2 million barrels but a draw nonetheless. Comdolls were a bit weaker for the day as risk aversion was in play for the most part. Earlier today, Australia reported a weaker than expected trade surplus of 0.86 billion AUD.

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