USD

The dollar is on weaker footing owing to the US government shutdown, which threatens to drag equities and bonds while it lasts.

There are no major reports lined up for today and futures are pointing to a weak open for US markets as the dollar has also gapped down over the weekend.

EUR

The euro had a stronger open as German coalition talks had positive updates over the weekend. As it turned out, SPD is backing talks with Merkel but no agreement has been struck yet. Still, these could push the shared currency around over the next few days before euro zone PMIs and the ECB decision take the spotlight.

GBP

The pound held on to most of its gains from the previous week despite the 1.5% slump in retail sales and is eyeing the UK preliminary GDP report this week. Another major report lined up is the claimant count change and average earnings index, which would provide some clues on inflation and consumer spending. There are no major releases from the UK today.

CHF

The franc has been able to take advantage of dollar weakness despite the lack of top-tier data from Switzerland. SNB officials have been mum about currency intervention, so traders don’t appear too wary of sudden shocks. There are still no reports due today so sentiment could keep pushing franc pairs around.

JPY

The yen has been supported thanks to dollar weakness but is behind overall to higher-yielding currencies as risk-taking is present. The BOJ decision is coming up tomorrow and yen traders might be looking to liquidate some of their positions ahead of an event risk. 

Commodity Currencies (AUD, NZD, CAD)

Comdolls have held their ground and continued to advance to the dollar as China’s data still showed promise. Canadian wholesale sales data is due today and a 1.0% gain is eyed. Retail sales and CPI figures are lined up throughout the week and might influence BOC hike expectations as the central bank sounded optimistic in last week’s announcement.

By Kate Curtis from Trader’s Way