The dollar had a mixed round as it reacted mostly to currency-specific events. US data was all weaker than expected last week, casting some doubt on the Fed’s ability to hike rates again. Building permits and housing starts both fell short of estimates while the preliminary UoM consumer sentiment index reflected a sharper than expected drop in optimism. There are no reports due from the US economy today but FOMC member Dudley has a speech scheduled.
The euro made a bit of a bounce against some of its peers as profit-taking came into play at the end of the week. There were no changes to the final CPI readings, although it’s worth noting that these were weaker than the earlier figures. There are no major reports due from the euro zone economy today.
The pound managed to hold on to most of its gains after last week’s hawkish BOE statement. However, the currency retreated against some of its counterparts on profit-taking ahead of this week’s Brexit talks. There were no reports out of the UK on Friday and none are due today, so Brexit-related headlines could push pound pairs around.
The franc was still in a weak spot as risk appetite popped back in the markets while traders are shying away from European currencies on event risks. There were no reports out of the Swiss economy on Friday and none are due today, so market sentiment could dictate franc price action.
The yen gave up ground against its peers at the end of the week as risk aversion faded and the BOJ maintained its easy monetary policy. Earlier today, Japan reported a weaker than expected trade balance of 0.13T JPY instead of widening from 0.16T JPY to 0.35T JPY.
Commodity Currencies (AUD, NZD, CAD)
The comdolls regained a lot of ground as risk-taking happened on Friday. Canadian foreign securities purchases turned out weaker than expected but the Loonie remained mostly supported. Australia’s CB leading index is due next but the main event risks for the comdolls this week are the RBNZ decision and oil-related headlines.