USD

The US dollar took a huge hit on Friday when economic data came in mostly weaker than expected. 

Headline inflation came in at 0.5% versus 0.6% while the core reading stood at 0.1% versus 0.2%. Retail sales data turned out mixed, with the headline reading up 1.6% versus 1.7% and the core figure at 1.0% versus 0.9%. Still, Fed head Yellen sounded hawkish in her speech over the weekend. There are no major reports due from the US economy today.

EUR

The shared currency gave up most of its recent gains at the end of the week as traders booked profits and lightened exposure to weekend risk. Spain’s political troubles are still in play so any major developments could lead to huge moves in either direction. German WPI and the region’s trade balance are the only reports lined up today.

GBP

The pound also took a step back from its recent rallies at the end of the week as there were no major reports to sustain the climb. The CB leading index posted a 0.1% dip while the previous figure was downgraded to show a 0.2% fall. Earlier today, the Rightmove HPI showed a 1.1% rebound in house prices.

CHF

The franc had a mixed run as it reacted to currency-specific data and drew little support from stronger than expected PPI. Producer prices were up 0.5% in September versus expectations of a 0.3% uptick, signaling that overall inflation likely picked up as well. There are no reports due from the Swiss economy today.

JPY

The yen was mostly weaker to its peers on Friday even as risk aversion was present and dollar weakness came into play. Over the weekend, BOJ Governor Kuroda emphasized in his speech that Japan will continue its monetary easing plan. The revised industrial production report is due today but no changes to the initial 2.1% estimate are eyed.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were able to take advantage of dollar and yen weakness on Friday even as data from China signaled a drop in global demand for commodities. The trade surplus narrowed from 287B CNY to 193B CNY on stronger imports. Chinese CPI and PPI are lined up next and weaker inflation is eyed. Canada has its foreign securities purchases due next while New Zealand will print its quarterly CPI and possibly show a 0.4% increase in price levels.

By Kate Curtis from Trader’s Way