The US dollar slumped after seeing mostly downbeat economic data, as this could seal the deal for the Fed to sit on its hands next week. Headline retail sales fell 0.3% versus the estimated 0.1% dip while core retail sales dropped 0.1% instead of gaining 0.3%. Headline PPI and the Empire State manufacturing index also fell short of estimates while the Philly Fed index posted a higher than expected climb. CPI and consumer sentiment figures are due next.
The euro held steady to the dollar but gave up ground to some of its other counterparts when risk appetite improved. Final CPI readings from the region showed no revision from the 0.2% headline and 0.8% core readings. There are no reports due from the euro zone today.
The pound enjoyed additional volatility during the BOE decision and release of the MPC minutes but ended mostly unchanged against its peers. The central bank kept policy unchanged as expected in a unanimous vote since they just increased stimulus in their previous month’s statement. The pound also drew a bit of support from the smaller than expected drop in UK retail sales of 0.2% versus the estimated 0.4% slide.
The franc popped slightly higher during the SNB statement but the lack of dovishness allowed it to regain ground. There are no reports due from the Swiss economy today.
The yen was able to hold on to its recent gains and chalk up a bit more even as risk appetite improved in the latter part of the trading day. There have been no reports out of the Japanese economy then and none are due today.
Commodity Currencies (AUD, NZD, CAD)
The comdolls took advantage of the pickup in risk appetite, even as data from Australia came in below expectations. The economy lost 3.9K jobs in August instead of reporting the estimated 15.2K gain. The jobless rate fell but mostly due to weaker labor force participation, reflecting weaker confidence in job prospects. Canadian manufacturing sales and foreign securities purchases are lined up today.