The US dollar regained ground as the Fed labor market conditions index saw an upgrade for the March report while traders turned their attention to Wall Street reform. The Treasury Committee headed by Mnuchin had a closed-door meeting to discuss the efficacy of the Volcker Rule as part of Trump’s order to conduct a review of the financial industry. Only medium-tier reports such as JOLTS job openings and final wholesale inventories are lined up today.


The euro returned its recent wins after the French elections as traders now turned their attention to the parliamentary election and whether or not Macron’s party can get majority of the seats. Data turned out stronger than expected with German factory orders up 1.0% versus the projected 0.7% gain, but this is slower than the previous 3.5% increase. Sentix investor confidence also beat expectations. German industrial production and trade balance, along with Italian retail sales, are up for release today.


The pound continued to advance against its peers even with no major reports out of the UK yesterday. Earlier today, the BRC retail sales monitor printed a strong 5.6% rebound from the earlier 1.0% decline. There are no other reports due today and traders seem to be gearing up for the BOE Super Thursday.


The franc had a mixed performance as it mostly reacted to currency-specific events in the absence of top-tier data from Switzerland. Only the Swiss jobless rate is due today and a drop from 3.3% to 3.2% is eyed so the franc might be able to gain a bit more support.


The yen caved under risk appetite, particularly to the European currencies. Japanese average cash earnings printed a surprise 0.4% drop versus the projected and earlier 0.4% uptick. Consumer confidence was also weaker than expected at 43.2 versus the 44.3 consensus and the earlier 43.9 figure. Japanese leading indicators is due next but the yen could stay sensitive to market sentiment and US bond yields.

Commodity Currencies (AUD, NZD, CAD)

The comdolls managed to make a bit of a rebound against their lower-yielding counterparts on a slight pickup in risk appetite or profit-taking. China’s trade balance printed stronger than expected headline results but the pickup in imports and exports fell short of estimates. Australia’s retail sales report churned out a 0.1% decline earlier today, setting a three-month streak of negative readings. Canadian building permits is due next.

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