The dollar has been on strong footing as the focus was on the tax bill vote, which managed to clear its way through even with a few road bumps. President Trump could sign the bill into law anytime soon, which would provide a strong boost to business activity and overall growth in the coming months. Initial jobless claims and the final GDP reading are due next.
The euro struggled to hold on to its recent gains, although it did manage to draw support from news that Germany will offer more bonds next year. This drove yields in the euro region higher, bolstering the shared currency as well. There are no reports due from the euro zone today.
The pound was mostly moving sideways as the lack of top-tier data and unease ahead of more Brexit talks kept gains in check. UK public sector net borrowing data is due today and a rise to 8.3 billion GBP is eyed.
The franc was still in a weak spot but managed to regain a bit of ground when the SNB Quarterly Bulletin was released. Today has the trade balance due and analysts expect a larger surplus of 2.88 billion CHF from the earlier 2.33 billion CHF figure.
The yen lost ground to most of its peers after the BOJ statement as the central bank simply sat on its hands and kept policy unchanged. There was not much hints on any unwinding of stimulus, dashing hopes of a “reversal rate” talk from the BOJ head earlier on. From here, market sentiment and global bond yields could push yen pairs around.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were able to hold on to most of their gains as risk-taking was in play. New Zealand’s GDP came in line with expectations of a 0.6% expansion while the earlier figure enjoyed an upgrade to a 1.0% growth figure. Canada’s CPI and retail sales data are due next and weak figures could undermine odds of BOC hikes next year.