USD 

The US dollar recovered from its downbeat performance late last week, thanks to upbeat remarks from Fed official Dudley and a positive close for equities.

Although it has been reported that Kim Jong Un has been briefed about the missile strike plan on Guam, he did note that they’ll wait and see how the US acts first. US retail sales data are lined up next and rebounds are eyed. 

EUR 

The euro gave up some ground upon seeing downbeat industrial production data. The report printed a 0.6% drop versus the estimated 0.4% dip while the previous reading was downgraded to 1.2%. German preliminary GDP is due next and a 0.7% growth figure is eyed while French and Italian banks are closed for the holiday. 

GBP 

The pound tried to hold its ground as traders are pricing in expectations for the upcoming CPI release. The headline reading is projected to rebound from 2.6% to 2.7% while the core reading could tick up from 2.4% to 2.5%. Weaker than expected data, however, could lead to more losses for the UK currency. 

CHF 

The franc gave up some of its recent gains as risk appetite improved in the markets. There were no reports out of the Swiss economy yesterday while the PPI is lined up today. A flat reading is eyed after the report printed a 0.1% dip in the previous period. 

JPY 

The yen was also weaker against most of its peers as risk-taking appeared to return or traders booked profits from their earlier long positions. Japan’s revised industrial production report is lined up but no revisions to the initial 1.6% estimate are eyed. Market sentiment could continue driving yen pairs from here. 

Commodity Currencies (AUD, NZD, CAD) 

The comdolls were still in a weak spot even with the pickup in risk-taking. WTI crude oil edged down on looming NAFTA renegotiations while downbeat data from China also weighed on the Aussie and Kiwi. Chinese industrial production slipped from 7.6% to 6.4% while retail sales fell from 11% to 10.4%. RBA minutes are due next and New Zealand will have its GDT auction in the next Asian session. 

By Kate Curtis from Trader’s Way