The US dollar was off to a strong start when risk appetite waned in the earlier trading sessions. However, the currency returned some of its wins when data from the economy missed expectations. The Empire State manufacturing index improved from -19.4 to -16.6, short of the consensus at -10.5. US PPI, building permits, and industrial production numbers are due today but traders are likely to hold out for the FOMC minutes, which might contain a few more downbeat remarks.

The euro advanced against most of its peers when data came in stronger than expected. The German ZEW index fell from 10.2 to 1.0, higher than the projected 0.1 reading, while the euro zone ZEW index slid from 22.7 to 13.6 instead of dropping all the way down to 10.3. There are no major reports due from the region today.

The pound suffered a sharp drop when UK CPI readings came in mixed. While the headline figure improved from 0.2% to 0.3% as expected, the core CPI fell from 1.4% to 1.2%, worse than the projected fall to 1.3%. UK jobs data is due today and a 2.9K increase in claimants is eyed, enough to bring the jobless rate down from 5.1% to 5.0%. However, traders are likely to pay closer attention to the projected fall in the average earnings index from 2.0% to 1.9%.

The franc was mostly stuck in consolidation since there were no major reports due from the Swiss economy. Today has the ZEW economic expectations index on tap and an improvement from the previous -3.0 reading could mean gains for the franc.

The yen was able to score huge wins against its rivals but ended up giving back some when risk sentiment improved. Data from Japan came in weaker than expected again, with core machinery orders rising 4.2% y/y instead of the estimated 4.6% growth.

Commodity Currencies (AUD, NZD, CAD)
The comdolls lost ground when Russia and OPEC failed to secure a solid agreement to freeze production, as Saudi Arabia agreed to participate only if other oil-producing nations agree to do so. New Zealand reported another fall in dairy prices of 2.8%, marking its fourth consecutive decline. Quarterly PPI numbers are due from New Zealand next.

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