USD

The US dollar steadied throughout the day as traders didn’t see any surprises from the Comey testimony. Economic data was in line with estimates as the initial jobless claims reading came in at 245K, down from the earlier 255K figure. Only the final wholesale inventories report is due from the US today.

EUR

The euro gave up some ground as the ECB downgraded inflation forecasts as expected. However, losses were limited since Draghi gave a few upbeat remarks during the presser. He clarified that normalization has not been discussed but that they’re not looking to cut anytime soon unless things get worse. French industrial production and the Italian quarterly unemployment rate are due next.

GBP

The pound was slightly weaker for the day as traders are feeling the jitters during the UK elections. Early polls are still hinting at a narrow lead for the Conservatives but that they could eventually win the majority. UK manufacturing production data is due next and a 0.8% rebound over the earlier 0.6% drop is eyed. Industrial production is slated to recover by 0.7%.

CHF

The franc had a mixed run as it acted as safe-haven against most of its rivals but caved to dollar and Kiwi strength. Data from Switzerland came in better than expected as the jobless rate improved to 3.2% while CPI ticked 0.2% higher versus the projected flat reading. There are no reports due from the Swiss economy today.

JPY

The yen gave up some ground as traders reestablished their long dollar positions on the lack of surprises during Comey’s testimony. Japan’s final GDP reading was downgraded from 0.5% to 0.3% instead of being upgraded to the 0.6% forecast. Tertiary industry activity data is due next and a 0.5% rebound is expected.

Commodity Currencies (AUD, NZD, CAD)

The Aussie was able to hold on to its gains even with downbeat trade data from Australia and China. Australia’s surplus narrowed from 3.17B AUD to 0.56B AUD versus the 1.91B forecast as exports slipped 8%. China’s trade surplus widened from 262B CNY to 282B CNY versus the projected rise to 336B CNY. Australian home loans and Chinese inflation numbers are lined up next. Canada is also set to release its jobs report and might show a gain of 11.5K in hiring.

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