The US dollar regained a lot of ground after US President Trump threw the spotlight back on tax reform and included a few more details. US economic data turned out mixed, with headline durable goods orders up by 1.7% versus the projected 1.0% gain and core durable goods orders posting a 0.2% uptick as expected. Pending home sales slipped by 2.6% versus the estimated 0.5% drop. US final GDP and initial jobless claims data are due next, along with a speech by FOMC member Fischer.
The euro had a mixed round as reacted mostly to country-specific events. There were no major reports out of the euro zone then and today has the German GfK consumer climate index, as well as its preliminary CPI. Analysts are expecting to see a rise from 10.9 to 11.0 for the consumer index and another 0.1% uptick in price levels. The Spanish flash CPI is due as well.
The pound had a strong rally after the CBI realized sales index jumped from -10 to +42, outpacing the consensus at +6. BOE Governor Carney has a speech lined up today and upbeat remarks on the economy and monetary policy could allow the UK currency to sustain its climb.
The franc also had a mixed run as it reacted mostly to market sentiment and its counter currencies. The Swiss UBS consumption indicator rose from 1.46 to 1.53 while the Credit Suisse Economic Expectations index rose from 25 to 28. There are no reports due from the Swiss economy today.
The Japanese yen gave up ground to its peers as the dollar raked in most of the gains. There were no reports out of Japan then while today has a speech by BOJ head Kuroda lined up. Dovish remarks could keep a lid on the yen’s gains while optimistic comments could allow it to regain ground. Also any escalation with North Korean tensions could also revive demand for the safe-haven currency.
Commodity Currencies (AUD, NZD, CAD)
The Loonie was dragged lower by cautious remarks from BOC head Poloz who reiterated that there is no pre-determined path for interest rates and that any adjustments would continue to be data-dependent. He did have a couple of upbeat remarks on inflation and the jobs market but bulls seemed mostly disappointed. The RBNZ kept rates on hold as expected while barely making any changes to their official statement, although they didn’t seem too concerned about Kiwi strength.