The US dollar was unable to hold on to its gains on Friday, as traders were disappointed to see the US flash manufacturing PMI fall from 52.0 to 51.4 instead of rising to 52.1. The new home sales report is due today and a drop from 658K to 598K is expected, keeping in line with the recent string of declines from the housing sector. FOMC member Tarullo also has a speech lined up.


The euro was stronger on Friday, thanks to mostly stronger than expected flash PMI readings. Only Germany’s services sector printed a disappointment, weighing on the region’s overall reading as well. The German Ifo business climate report is due today and a rise from 106.2 to 106.3 is expected. ECB Governor Draghi also has a speech lined up.


The pound managed to make a bit of a bounce on Friday even though there were no major reports out of the UK. Only the BBA mortgage approvals report is due today and a drop from 37.7K to 37.2K is expected, possibly forcing the pound to return some of its recent gains.


The franc advanced against its peers, likely taking its cue from upbeat euro zone PMI readings. There were no reports out of the Swiss economy on Friday and none are lined up today so the franc could trail the euro or be influenced by market sentiment.


The Japanese yen gave up a bit of ground against its rivals as profit-taking took place. Data from Japan came in better than expected, as the flash manufacturing PMI rose from 49.5 to 50.3 while the all industries activity index posted a 0.3% uptick. BOJ Governor Kuroda has a speech scheduled today.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were able to benefit from dollar and yen weakness on Friday but were slightly weaker against the European currencies. The Loonie gave up a lot of ground when CPI and retail sales figures missed expectations. BOC Governor Poloz has a speech due today.

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