The dollar gave back some of its gains earlier in the week when Friday’s set of reports turned out disappointing. Headline CPI came in at 0.2% versus 0.3% while core CPI printed a meager 0.1% uptick. Headline retail sales increased 0.4% versus 0.6% while core retail sales advanced by 0.3% versus 0.5% to signal that the consumer sector is not that strong yet. Only the Empire State manufacturing index is due today and a rise from 5.2 to 7.2 is eyed.
The euro was able to advance against most of its counterparts on Friday as European traders moved their holdings away from the pound on a disappointing UK Super Thursday. German preliminary GDP came in line with expectations of a 0.6% expansion while euro zone industrial production was slightly weaker than expected. There are no reports due from the region today.
The pound was still in a weak spot after the BOE Super Thursday disappointed earlier in the week. There were no reports out of the UK on Friday and none are due today, but UK PM May has a testimony due and any Brexit-related remarks could push pound pairs around.
The franc managed to gain ground against most of its rivals as the pound weakened and a bit of risk aversion returned. There were no reports out of the Swiss economy then and today has the PPI due. Analysts are expecting to see a flat reading after the earlier 0.1% uptick.
The yen regained some ground as traders moved out of the dollar on disappointing CPI and retail sales figures from the US. Japan’s PPI turned out stronger than expected with a 2.1% gain versus the estimated 1.8% increase. There are no other reports due from Japan today so market sentiment could push yen pairs around.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were mostly weaker for the day, although the Kiwi managed to put up a fight on stronger than expected quarterly retail sales data printed over the weekend. The headline figure rose 1.5% versus the projected 1.1% gain while the core reading increased by 1.2% versus the 0.9% consensus.