USD

The US dollar regained a bit of ground against the yen but gave up some of its wins to the euro and the pound. 

There have been no top-tier releases from the US economy at the start of the week, which explains the Greenback’s mixed price action, although traders seem to be weighing in on the potential impact of the snowstorm in the northeast part of the country. For today, durable goods orders data are lined up, with an expected 0.6% uptick for both headline and core figures. Bear in mind that the previous readings have already been revised lower, which could mean downside risks for today’s releases. Also up for release are the CB consumer confidence and new home sales figures.

EUR

The euro recovered against most of its major counterparts, as traders booked profits off their short positions after the Greek elections. Data from the euro zone came in line with expectations, with the German Ifo business climate index improving from 105.5 to 106.7. There are no major reports up for release from the euro zone today as updates on the Greek political and debt situation might drive the shared currency.

GBP

The pound made a quick bounce to its forex rivals when a BOE official suggested that a rate hike is still possible if inflation picks up. There have been no actual reports released yesterday while today has the preliminary GDP reading due. This could show a 0.6% growth figure for Q4 2014, slightly weaker compared to the previous 0.7% expansion. Strong data could keep the pound afloat while weak figures could allow the selloff to resume.

CHF

The franc suffered a sharp selloff yesterday on rumored SNB intervention, as the Swiss currency has a lot of ground to recover after the central bank decided to scrap the currency peg the other week. There have been no reports released from Switzerland yesterday and none are due today.

JPY

The yen gave up ground to some of its counterparts, as market corrections were made and risk appetite improved slightly. Japan reported a smaller trade deficit and an upgrade in the previous period’s reading, adding support to Japanese equities. There are no major reports due from Japan today, leaving the yen sensitive to risk sentiment.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were still in a weak spot yesterday, as falling commodity prices weighed on price action. Earlier today, Australia reported a small improvement in its NAB business confidence index from 1 to 2. There are no other reports lined up from these economies for the rest of the day, leaving risk sentiment and commodity price action in the driver’s seat.

By Kate Curtis from Trader’s Way