USD

The US dollar continued to climb against its counterparts, as traders piled on their long positions after seeing the strong NFP report. 

There have been no major reports released from the US economy yesterday while today has only the JOLTS job openings report on tap. Risk aversion has also been supporting the US dollar recently, as the prospect of a Fed rate cut weighed on higher-yielding currencies.

EUR

The euro carried on with its tumble to its forex rivals, as a combination of weak fundamentals and risk aversion dragged the shared currency lower. Data from the euro zone was mixed, as the German trade balance came in weaker than expected while the region’s Sentix investor confidence report surprised to the upside. French and Italian industrial production numbers are up for release today and weak figures could lead to a sharper drop for the euro.

GBP

The pound was unable to recover against the dollar but it managed to bounce against the yen in recent trading. There have been no reports released from the UK then and none are lined up today, although BOE Governor Carney and hawkish member McCafferty are set to give testimonies. Upbeat comments could allow the pound to recoup more of its recent losses.

CHF

The franc slid lower to most of its forex counterparts, despite the lack of data from Switzerland yesterday. Today has the unemployment rate on tap and an increase from 3.1% to 3.2% is expected, which might lead to more franc weakness. On the other hand, strong data could allow the Swiss currency to get back on its feet.

JPY

The Japanese yen gave up more ground to the dollar but managed to advance against most of the higher-yielding currencies, particularly the comdolls. Data from Japan was mostly weaker than expected, as the GDP was downgraded from 0.6% to 0.4% in Q4 while the current account balance missed expectations. There are no major reports lined up from Japan today, leaving risk sentiment in charge of price action.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were the weakest among the bunch in recent trading, as these higher-yielders got wiped out by risk aversion. Falling commodity prices also weighed on the comdoll group, as oil seemed ready for another leg lower. Earlier today, China printed a stronger than expected CPI reading of 1.4% but its PPI showed a sharper than expected decline, indicating that further weakness in inflation is possible.

By Kate Curtis from Trader’s Way