Dollar pairs are treading carefully as traders are waiting for more updates on tax reform and the House vote this week. Data came in mixed, with headline and core CPI up 0.1% and 0.2%, respectively. Headline retail sales rose 0.2% instead of printing a flat reading while the core version of the report showed a 0.1% uptick. Initial jobless claims, import prices, industrial production, and the Philly Fed index are due today.


The euro retreated from its strong climb earlier in the week despite stronger than expected data. The region’s trade balance turned out stronger than expected at a surplus of 25 billion EUR versus the estimated 21.2 billion EUR reading. Final CPI readings are due today and no revisions to the 1.4% and 0.9% estimates for the headline and core figures are expected.


The pound regained some ground upon seeing mostly stronger than expected jobs data. Claimant count rose by 1.1K versus the projected 2K increase in joblessness while the average earnings index came in at 2.2% versus the estimated 2.1% increase. The previous reading also enjoyed an upgrade to 2.3% to reflect stronger wage growth than initially reported. UK retail sales data is due today and a 0.1% uptick is eyed.


The franc continued to advance against most of its peers as it raked in safe-haven gains away from the dollar. There were no reports out of the Swiss economy yesterday but the previous ones have been mostly stronger than expected, easing fears of SNB intervention. There are still no reports due from Switzerland today so franc pairs could take their cues from market sentiment.


The yen also took advantage of dollar weakness and was able to get a boost from the upgraded industrial production figure. The reading was revised from a 1.1% decline to just 1.0% for September. There are no major reports due from Japan today so the yen could continue to wait for clues from the dollar or overall sentiment.

Commodity Currencies (AUD, NZD, CAD)

The Aussie was one of the weakest performers for the day as it was bogged down by weak wage growth. Earlier today, Australia’s jobs figures turned out weaker than expected as the economy added only 3.7K jobs in October versus the projected 17.8K gain. However, the previous reading was upgraded while the unemployment rate ticked lower. Falling oil prices on rising inventories weighed on the Loonie. New Zealand will release its quarterly PPI next and slower quarterly gains are eyed.

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