The US dollar was in a weak spot recently, despite stronger than expected data from the economy. Headline durable goods orders showed a 3.4% jump versus the projected 3.2% gain but the previous reading was downgraded to show a 2.2% decline. Core durable goods orders saw a 0.8% increase instead of the projected 0.4% uptick, following the previous flat reading. For today, US CB consumer confidence data is due and a drop from 101.4 to 100.1 is eyed.
The euro continued to advance against its forex rivals as Greek talks showed positive developments. Data from the euro zone was also better than expected, with the German Ifo business climate index improving from 107.5 to 108.0, higher than the projected 107.6 figure. For today, there are no reports lined up from the euro zone.
The pound was stuck in consolidation against most of its forex counterparts when traders sat on their hands ahead of the UK GDP release today. The economy is expected to show a 0.7% growth figure, stronger than the previous quarter’s 0.4% expansion. A higher than expected GDP figure could remind traders that the BOE is moving towards a more hawkish stance, which could spur more gains for the pound.
The franc sold off against its forex counterparts once more, even with the lack of data from Switzerland. There are still no reports lined up from the Swiss economy today, suggesting that the currency might keep selling off if the current market sentiment persists.
The yen regained a bit of ground, thanks to the risk-off market environment. There have been no reports released from Japan but it looks like the selloff in global equities is leading traders to flee to the safe-haven yen. There are still no reports due from Japan today.
Commodity Currencies (AUD, NZD, CAD)
The Aussie was off to a poor start since gold prices continued to tumble early on in the week. There have been no reports released from the comdoll economies recently, making the Loonie sensitive to oil price trends as well. Underlying inflation data from Canada is up for release today but risk sentiment could play a bigger role in price action.
By Kate Curtis from Trader’s Way