The US dollar regained some ground in recent trading as data came in mostly stronger than expected and the S&P 500 index reached record highs. The flash manufacturing PMI rose from 54.3 to 55.1, higher than the projected 54.6 figure, while the Richmond manufacturing index also advanced. Existing home sales fell but this was mostly due to tighter inventory. There are no major reports due from the US today so traders could pay closer attention to Trump’s moves.


The euro continued to advance against most of its peers as the UK High Court ruling eased some Brexit concerns. Also, euro zone reports came in mixed, with German flash manufacturing PMI and French flash services PMI beating expectations. German Ifo business climate is due today and a rise from 111.0 to 111.3 is expected.


The pound had a volatile time during the announcement of the UK High Court ruling but the decision to require parliamentary approval before invoking Article 50 proved to be bullish for the currency. This could give the government and lawmakers time to iron out their negotiation game plan before debating with EU officials. UK public sector borrowing data also indicated improving financial conditions. CBI industrial order expectations is due today.


The franc edged slightly lower against the euro and the pound as risk appetite improved and the dollar stabilized. There were no reports out of the Swiss economy yesterday while today has the UBS consumption indicator on tap. Any decline from the earlier 1.43 figure could push the franc lower.


The yen gave up a lot of its recent gains when demand for the dollar returned. Japanese flash manufacturing PMI and trade balance came in stronger than expected. The surplus narrowed from 0.47T JPY to 0.36T JPY but this was better than the projected 0.22T JPY reading.

Commodity Currencies (AUD, NZD, CAD)

The comdolls gave up some of their recent gains to the dollar but the Loonie managed to stay resilient as Trump signed the executive order for the Keystone XL pipeline construction. This could shore up demand for Canada’s energy resources, which would support growth and hiring. In Australia, the quarterly CPI missed estimates with a 0.5% uptick versus the projected 0.7% increase. US crude oil inventories data is due today.

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