The US dollar was off to a weak start on Monday as risk-taking took hold and traders flocked to stocks and commodities. The mood was positive after the Trump administration released their infrastructure spending plans. There are no major reports due from the US today but FOMC member Mester has a speech due.
The euro was weaker on more signs of trouble in German coalition talks. There were no reports to prop up the shared currency then while today has French private payrolls on tap. Analysts are expecting to see a 0.2% uptick for the quarter, although this might not have much of an impact on euro behavior.
The pound barely drew support from another round of mostly hawkish remarks from BOE officials, even as McCafferty reiterated that further hikes are needed. He did say that they need to get rates up to a level where they can cut later on if needed, though. UK CPI readings are due today and a dip in the annual headline figure from 3.0% to 2.9% is eyed. The core reading could advance from 2.5% to 2.6%.
The franc was mostly stuck in consolidation as a bit of risk appetite returned to the financial markets. Swiss CPI came in line with estimates of a 0.1% dip and PPI data is due today. Another 0.2% uptick is expected.
The yen was also in a weak spot like the dollar as safe-havens lagged behind. The announcement that BOJ head Kuroda would likely be appointed for another full five-year term also kept easing expectations in place. PPI dipped from 3.0% to 2.7% and preliminary machine tool orders data is due next.
Commodity Currencies (AUD, NZD, CAD)
The Aussie and Kiwi took advantage of risk-on flows while the Loonie lagged despite a bounce in crude oil. Australia’s NAB business confidence index rose from a downgraded reading of 10 to 12 to reflect a bit more optimism. There are no major reports due from the comdolls next.