USD

The US dollar staged a decent recovery during the New York session on revived expectations of Fed tightening. 

This was spurred by remarks from several central bank officials highlighting the shift to tightening mode across the globe. Economic data turned out mostly upbeat, with the core PCE price index rising from 0.1% to 0.2% and the personal income figure up by 0.4% versus the 0.3% forecast. Personal spending, however, fell short at 0.4% versus the 0.5% consensus. The CB consumer confidence index is due today.

EUR

The euro weakened against most of its counterparts on risk-off vibes for the most part of the European session and on remarks from an ECB official highlighting the shift to global tightening. German import prices came in line with estimates of a 0.3% uptick. German preliminary CPI, French consumer spending, Spanish flash GDP, and the region’s flash GDP are all lined up today.

GBP

The pound was one of the weaker performers as infighting in PM May’s party ahead of the announcement on the EU’s negotiating stance in the Brexit transition. There were no reports out of the UK economy then while today has net lending to individuals and mortgage approvals data on tap.

CHF

The franc took advantage of risk-off flows during the European session as the euro was also in a weak spot. There were no reports out of the Swiss economy then while today has the trade balance and KOF economic barometer on the docket. A smaller surplus of 2.54 billion CHF is eyed while the KOF reading could dip from 111.3 to 110.9. 

JPY

The yen struggled to hold on to its recent gains as some of the risk-off flows returned to the dollar. Japanese data also turned out mostly weaker than expected as both household spending and unemployment rate missed forecasts, although the latter was due to higher labor force participation. Retail sales beat expectations with a 3.6% gain versus the estimated 2.1% increase.

Commodity Currencies (AUD, NZD, CAD)

The comdolls gave up some ground to the dollar but stayed resilient to the European currencies. In Australia, the NAB business confidence index improved from 7 to 11 while New Zealand’s trade balance switched to a surplus of 640 million NZD versus the estimated 125 million NZD shortfall on stronger exports. There are no reports due from the comdoll economies today.

 By Kate Curtis from Trader’s Way