The US dollar stalled from its rallies earlier in the week, as traders likely
lightened up on their holdings ahead of the weekend. There were no major
reports out of the US economy then while today has the flash manufacturing PMI
on tap. Analysts are expecting to see a climb from 50.8 to 51.0 to show a
faster pace of industry expansion.



The euro managed to hold on to some of its recent gains as data from the region
came in mixed. German PPI posted a 0.1% uptick in producer prices versus the
projected 0.2% increase while the current account surplus widened to 27.3
billion EUR. Flash manufacturing and services PMI readings from Germany and
France are lined up today and improvements are eyed, likely enough to support
the shared currency.




The pound was one of the
biggest losers on Friday, as the UK currency gave up ground on Brexit
speculations and short-covering. UK data was stronger than expected, as the CBI
industrial order expectations index rose from -11 to -8 instead of falling to
-13. There are no major reports due from the UK today.



The franc was able to recover against most of its peers when traders booked
profits off their previous short positions. There were no reports released from
the Swiss economy then and none are due today, although the franc could be
pushed around by euro zone data.



The yen chalked up gains across the board when rumors of the BOJ gearing up to
end its quantitative easing program hit the airwaves. Traders also booked
profits off their earlier short positions ahead of the G7 Summit over the
weekend, as leaders discussed how competitive devaluation should be avoided.
Japan’s flash manufacturing PMI and all industries index are due today.


Commodity Currencies (AUD, NZD, CAD)

The comdolls were mostly weaker as crude oil returned some of its recent gains
and Canada’s reports showed mixed results. Headline retail sales showed a
larger than expected 1.0% drop while core retail sales printed a smaller than
expected 0.3% dip. Headline CPI rose 0.3% while core CPI showed a stronger than
expected 0.2% uptick. Canadian banks are closed for the holiday today.

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