USD

The US dollar dollar drew some support in the New York session as US President Trump said that he sees the currency getting stronger and stronger.

He also said that Treasury Secretary Mnuchin’s remarks on a weaker dollar being good for trade as taken out of context. Data turned out mixed as the initial jobless claims rose from 216K to 233K but was better than the estimated 239K figure. New home sales sank from a downgraded 689K figure to 652K versus the estimated drop to 627K. Advance GDP data is due next and a 3.0% growth figure is eyed.

EUR

Volatility picked up for the euro after the ECB statement as the central bank kept policy unchanged as expected but Draghi had a few more insights to share. He cited that risks remain balanced and that uncertainty is stemming from possible changes in US policy. He also explained that the central bank is not targeting exchange rates. There are no major reports due from the euro zone today.

GBP

The pound was able to score some gains against its peers despite the lack of top-tier UK data. High Street lending sank from 39K to 36.1K while the CBI realized sales index fell from 20 to 12. The UK preliminary GDP reading is due today and analysts expect to see another 0.4% expansion for Q4 2017.

CHF

The franc continued its advance even though SNB head Jordan warned that they could intervene in the forex market to curb currency strength if necessary. So far it looks like the franc is still taking some of the safe-haven flows from the dollar. There were no reports out of the Swiss economy then and none are due today, so market sentiment could push franc pairs around.

JPY

The yen regained some ground after the release of the CPI and BOJ minutes. The national CPI held steady at 0.9% as expected but the Tokyo core CPI fell from 0.8% to 0.7%. Meanwhile the BOJ minutes didn’t contain any surprises and even had a few upbeat remarks. Dollar demand and sentiment could push yen pairs around.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were able to hold their ground as risk-taking was in play but gave up some ground to the dollar when it surged. Canadian retail sales turned out mixed as the headline figure came in at 0.2% while the core figure showed a 1.6% gain versus the 0.8% consensus. Canada’s CPI reports are due next.

By Kate Curtis from Trader’s Way