USD

The US dollar had a topsy-turvy Friday during the NFP release as the actual figure came in better than expected at 203K, beating the consensus at 180K and pushing the jobless rate down to 7.0%.

Consumer sentiment also came in much better than expected at 82.5 versus the estimate at 76.2 while the previous figure was revised up to 75.1. There are no major reports due from the US economy today so we might see a continuation of the dollar rallies from last week.

EUR

The euro was undeterred by weaker than expected data from Germany last Friday, as the pair still rallied to the 1.3700 handle. German factory orders fell by 2.2%, much worse than the estimated 0.4% drop while the previous figure was revised down to 3.1%. German trade balance and Sentix investor confidence figures are up for release today and another round of weak data could keep euro gains at bay.

GBP

The pound sank below the 1.6400 major psychological level last week, as there wasn’t enough follow through from UK fundamentals. It didn’t help that the US printed a strong NFP reading, which pushed GBP/USD closer to 1.6300. There are no reports due from the UK today but BOE Governor Carney is set to give a speech, which might rock pound pairs during the latter trading sessions.

CHF

The franc had a pretty good Friday, as USD/CHF sank deeper below the .9000 major psychological level. Swiss CPI came in better than expected at 0.0% versus the estimated 0.2% drop. Swiss retail sales is up for release today and an improvement to 1.7% is eyed from the previous 1.0% increase. A stronger than expected reading, which is likely given the gains in hiring, could push the franc higher.

JPY

Yen pairs resumed their rallies on Friday, even though there were no major reports released from Japan then. Indications that the BOJ is ready to pump up its stimulus efforts if necessary pushed the yen lower against most of its major counterparts. Earlier today, Japan printed weaker than expected reports, as the current account balance showed a deficit while the final GDP reading was revised down from 0.5% to 0.3%. No other reports are due from Japan today so these weak figures might push yen pairs up the charts.

Commodity Currencies (AUD, NZD, CAD)

The comdolls had a choppy trading session on Friday, although the Kiwi, Aussie, and Loonie managed to escape with some gains. Data from Canada was stronger than expected, with the labor market showing a 21.6K rise in hiring instead of the estimated 12.3K increase. Earlier today, Chinese CPI came in line with consensus at 3.0%, keeping the Aussie afloat. No other reports are due from the comdoll economies so these pairs might be sensitive to dollar behavior and risk sentiment for the day.

By Kate Curtis from Trader’s Way