USD

The dollar gave back some of its recent gains on Friday, when the NFP release printed a weak figure. The actual result showed a mere 162K increase in hiring instead of the estimated 178K rise. 

On top of that, the previous month’s figure was revised lower to 104K. Although the jobless rate improved, it was mostly a result of a drop in participation rate. This was enough to cast doubts on the Septaper, as many knew that the Fed was looking at the jobs sector to determine how much it would reduce bond purchases. There are no major reports due from the US today. 

EUR

The euro rebounded against the dollar on Friday, as it took advantage of the weak NFP release. The pair was able to rally from the 1.3100 area back to 1.3150. Data from the euro zone was actually weak then, as Germany printed a lower than expected industrial production figure and a smaller than expected trade surplus. Only the Sentix investor confidence report is due from the euro zone today and isn’t likely to cause a huge impact on the shared currency’s movement. 

GBP

The pound was selling off during the London session, as UK data such as manufacturing production were both weak. However, the weak US NFP reading allowed GBP/USD to rally back to the 1.5600 area. For today, the UK schedule is free from any economic reports so pound trading could rely on risk sentiment. 

CHF

  The franc recovered against the dollar last Friday, although Swiss data was actually weaker than expected. Swiss CPI printed a 0.1% decline in price levels, lower than the estimated flat reading. This followed the previous 0.4% decline, prompting some to worry about deflation in Switzerland. Swiss retail sales are due today and a strong rebound from 2.3% to 3.2% is expected. 

JPY

The yen regained strength against the dollar on Friday but USD/JPY gapped up over the weekend on renewed support for Abe’s sales tax increase. Japanese data also came in mostly weaker than expected earlier today, as the final GDP reading was revised down from 1.0% to 0.9%. No other reports are due from Japan for the rest of the day as the prospect of the sales tax increase could keep hurting the yen. 

Commodity Currencies (AUD, NZD, CAD)

The comdolls packed in strong gains against the dollar starting on Friday, as the weak NFP reading dragged the Greenback down. The Australian dollar tested the .9200 resistance while NZD/USD jumped above .8000. Canadian building permits are due in the US session and a strong figure could keep boosting the Loonie. Earlier today, Chinese inflation data came in line with consensus at 2.6%. There are no other reports due from the comdoll economies for the rest of the day. 

By Kate Curtis from Trader’s Way