The US dollar scored gains across the board, buoyed by upbeat economic data. The ISM manufacturing PMI was up from 53.2 to 54.7, much higher than the projected 53.7 figure. Components for prices, employment, production, and new orders all showed gains. Construction spending also beat expectations with a 0.9% gain. The FOMC minutes are up for release today and this might lead to another round of dollar rallies.
The euro weakened to the dollar and comdolls but managed to hold steady against the yen. Data from the region was mixed, as the French preliminary CPI missed expectations while the German flash CPI met consensus. German unemployment change data showed a larger 17K reduction in joblessness versus the projected 5K drop. Final services PMI readings are due today, along with the Spanish unemployment change report.
The pound got a bit of a boost from the upside surprise in its manufacturing PMI, although Brexit concerns dampened the currency’s gains. The reading rose from 53.6 to 56.1 instead of dipping to the 53.3 consensus. Construction PMI is due today and a dip from 52.8 to 52.6 is expected.
The franc gave up ground to the dollar but scored some gains against the euro and pound. Swiss manufacturing PMI fell from 56.6 to 56.0, lower than the projected 56.1 figure. There are no reports due from the Swiss economy today.
The Japanese yen put up a fight against the dollar but was no match to comdoll strength. Japan’s final manufacturing PMI was upgraded from 51.9 to 52.4 to reflect a faster pace of industry growth than initially reported. There are no other reports due from Japan today so market sentiment and the FOMC minutes could push yen pairs around.
Commodity Currencies (AUD, NZD, CAD)
The comdolls staged rallies late in the day as gold prices picked up. Crude oil was weaker on reports that Libya plans to increase production with its exemption from the OPEC deal. New Zealand reported a 3.9% drop in dairy prices during its latest GDT auction. No other top-tier reports are lined up from the comdolls today.