USD

The US dollar raked in some gains after seeing upbeat jobs data but was still in a weak spot against the European currencies and the Japanese yen.

The economy added 292K jobs in December, higher than the projected 203K increase, while previous upward revisions added 50K in hiring gains. Average hourly earnings were flat, indicating that there was no wage growth seen. Only the labor market conditions index is due from the US today.

EUR

The euro managed to advance against most of its forex counterparts on Friday, despite weaker than expected data from the euro zone. German industrial production fell by 0.3% while French industrial production was down by 0.9%. The euro zone Sentix investor confidence index is up for release today and a drop from 15.7 to 11.5 is eyed.

GBP

The pound was still in a weak spot against most of its rivals even though the UK trade balance came in line with expectations of a 10.5 billion GBP deficit. There are no reports due from the UK economy today.

CHF

The franc took its cue from the euro and advanced against most of its counterparts. Data from Switzerland was weaker than expected, as the CPI fell by 0.4% instead of showing the projected 0.2% dip. Swiss retail sales data is due today and a 0.3% rebound is eyed.

JPY

The yen carried on with its risk-off rallies, particularly against the commodity currencies. Japanese banks are closed for a holiday today but the yen is drawing support from downbeat Chinese data released over the weekend, with the CPI falling short of expectations and the PPI showing further downside price pressures down the line.

Commodity Currencies (AUD, NZD, CAD)

The comdolls started the week on a downbeat note, as traders speculated that further weakness could be seen from China. The CPI rose from 1.5% to 1.6%, short of the projected 1.7% figure, while the PPI indicated a 5.9% year-over-year slide as expected. In Canada, the jobs report showed a 22.8K gain in hiring which was mostly a result of part-time employment. In Australia, ANZ job advertisements fell by 0.1%.

By Kate Curtis from Trader’s Way