USD 

The US dollar took hits from downbeat CPI data, profit-taking during the FOMC statement, and Yellen’s presser.

Core CPI missed forecasts by posting a meager 0.1% uptick versus the estimated 0.2% gain. The FOMC statement was a bit more positive on jobs and inflation but it was Yellen’s remarks downplaying price gains and tax cuts that led to more losses. US retail sales figures are also lined up today, with the headline figure slated to show a 0.3% gain and the core reading likely to show a much stronger 0.6% increase. 

EUR 

The euro took advantage of dollar weakness but was still shaky against the commodity currencies. Euro zone reports were mixed and today’s ECB decision could lead to big moves. Medium-tier data from the euro zone has been mixed since the last decision but inflation has ticked higher, so many are expecting some clues on tightening for next year. 

GBP 

The pound managed to hold some ground despite weak jobs data. Claimants increased by 5.9K versus the projected 3.3K gain in joblessness while the unemployment rate was unchanged at 4.3% instead of improving to the projected 4.2% figure. Average earnings improved from 2.3% to 2.5% as expected, though. The BOE decision is lined up today and could also mean extra volatility for pound pairs. 

CHF 

The franc was able to regain a bit of ground as traders were more cautious ahead of the top central bank events. There were no reports out of the Swiss economy then while today has the PPI and the SNB decision. No actual rate changes are eyed and the central bank might refrain from jawboning this time. 

JPY 

The yen also took advantage of risk aversion and dollar weakness, even as there were no major reports out of Japan. Today has the revised industrial production numbers lined up but the yen could continue to take its cue from global bond yields and risk sentiment. 

Commodity Currencies (AUD, NZD, CAD) 

The Aussie continued to be the strongest performer of the bunch, getting a boost from rising gold on risk aversion and a less dovish RBA earlier on. The Loonie was in a weak spot as crude oil barely got a boost from a larger than expected draw in EIA stockpiles. Australia’s jobs report turned out stronger than expected with a 61.6K jump in hiring. 

By Kate Curtis from Trader’s Way