The US dollar was mostly weaker against its peers as the Senate version of the tax plan differed with that of the House. This signals that it would take much longer than initially expected before any of these are implemented, especially since Senate is also proposing a one-year delay for the cuts. US banks are closed for the holiday today but the UoM preliminary consumer sentiment index is still up for release and analysts are expecting to see an increase from 100.7 to 100.8.
The euro got a boost from upgraded forecasts by the EU, which supported the idea of tapering next year and possibly an interest rate hike later on. ECB member Coeure also had a testimony with hawkish remarks suggesting that QE cannot go on indefinitely. Data also turned out better than expected as the German trade balance showed a surplus of 21.8 billion EUR versus the estimated 21.0 billion EUR figure. French industrial production and private payrolls are due next, along with Italian industrial production data.
The pound was dragged lower by the usual slew of Brexit concerns and the possibility of delaying the trade talks to next year. UK manufacturing production data is due today and analysts are expecting to see a 0.3% uptick while industrial production could also post a 0.3% gain. The goods trade balance and NIESR GDP estimate are also lined up.
The franc ticked higher during the London session as risk aversion was present but gave up some of its ground to the commodity currencies later on. The Swiss jobless rate came in line with expectations at 3.1%. There are no reports due from the Swiss economy today so the franc could be sensitive to market sentiment.
The yen had a mixed run as the lack of top-tier data left it vulnerable to currency-specific factors. The tertiary industry activity index is up for release next and analysts are expecting to see a 0.1% dip. Yen price action could also hinge on risk sentiment and bond yields from here.
Commodity Currencies (AUD, NZD, CAD)
The Loonie was able to hold on to its gains, thanks to dollar weakness and the continued strength in crude oil prices. Rumors that the crown prince of Saudi Arabia will take the throne soon reinforced the anti-corruption crackdown, which has been positive for the commodity. There are no other reports due from the comdoll economies.