The US dollar tossed and turned as the lack of top-tier data left traders extra sensitive to updates from Washington. Fears that the Trump tax plan could lose votes from a couple of GOP Senators displeased with the US President dragged the currency down at the start of the session, but hints that Trump could pick Taylor as his next Fed Chief spurred gains. US flash services and manufacturing PMI readings from Markit also beat expectations while the Richmond manufacturing index disappointed. Durable goods orders data and new home sales are lined up next.


The euro was mostly stronger for the day as traders are starting to price in upbeat expectations for the ECB decision. PMI readings from Germany and France came in better than expected, with only the region’s flash services PMI missing the mark. German Ifo business climate data is due next and no change from the 115.2 figure is eyed.


The pound was mostly weaker against its counterparts as traders focused on Brexit updates while there were no major reports out of the UK economy. Today has the preliminary GDP reading due and another 0.3% growth figure is expected, but downbeat results could undermine confidence that the UK can stay resilient throughout Brexit.


The franc held steady against most of its peers since there were no major reports out of the Swiss economy. Today has the UBS consumption indicator due and a gain from the earlier 1.53 figure could spur franc strength. The Credit Suisse Economic Expectations index is also lined up and an improvement over the earlier 28.0 reading could also provide a boost.


The yen was still in a weak spot against most of its counterparts while retracing from its drop against others. Japan’s flash manufacturing PMI was weaker than expected as it fell from 52.9 to 52.5 instead of improving to 53.1. There are no reports due from Japan today so risk sentiment could stay in play or the currency could take its cue from bond yields.

Commodity Currencies (AUD, NZD, CAD)

The Aussie tumbled sharply upon seeing downbeat CPI readings, with the headline figure at 0.6% versus 0.8% and the core reading at 0.4% versus 0.5%. Canada’s monetary policy statement is due next and no rate changes are eyed. Instead traders are likely reading between the lines to gauge if another hike is in the cards before the end of the year. New Zealand’s trade deficit is due in the next Asian session and a smaller deficit of 900 million NZD is expected.

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