The US dollar had a mixed run against its counterparts at the end of the previous trading week as banks were closed for Veterans Day. The preliminary UoM consumer sentiment index fell from 100.7 to 97.8 versus the estimated improvement to 100.8 to reflect weaker optimism. Only the federal budget balance is due next and the focus could remain on tax reform.
The euro managed to hold its ground by the end of the week as sellers probably booked profits from their short positions earlier on. Data from the region was weaker than expected as French preliminary private payrolls and Italian industrial production came in short of consensus. Germany is set to print its wholesale price index and might show a 0.4% increase.
The pound was off to a weak start this week even as the UK printed stronger than expected manufacturing production data on Friday. Both industrial and manufacturing production rose 0.7% while the goods trade deficit was smaller than expected. Earlier today, the Rightmove HPI showed a 0.4% fall in house prices.
The franc was able to chalk up some gains against most of its rivals even though there were no major reports out of the Swiss economy on Friday. There are still no reports due from Switzerland today so the currency could be sensitive to its counterparts’ direction and overall market sentiment.
The yen was in a weak spot on Friday as risk appetite was present for the most part. Japanese tertiary industry activity fell 0.2% versus the projected 0.1% dip. Over the weekend, the PPI turned out stronger than expected with a 3.4% gain versus the projected 3.1% increase. Preliminary machine tool orders data is due next, along with a speech by BOJ Governor Kuroda.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were able to stay afloat against most of their peers as risk appetite was on their side. There were actually no major reports from Australia, New Zealand, and Canada then and none are due today as Canadian banks are closed for the holiday. With that, the comdolls could be off to a slow start or could stay sensitive to market sentiment.