USD

The US dollar had a mixed performance, as it gained ground to the pound and comdolls but weakened against the yen and euro. 

FOMC officials had mixed views on a potential rate hike later this year, as FOMC member Evans expressed concerns about normalizing too soon. However, Fed officials Dudley and Williams sounded more optimistic in saying that a liftoff is likely to take place this year. Pending home sales was much weaker than expected with a 1.4% decline while personal spending showed a stronger than expected 0.4% gain. Personal income lagged with a bleak 0.3% uptick. US CB consumer confidence data is due today.

EUR

The euro managed to gain ground against the dollar and the comdolls, despite the lack of top-tier data from the region. The polls in Catalonia, Spain don’t seem to be weighing on the shared currency so far, although this could set a precedent for cities looking to break away. German and Spanish preliminary CPI readings are due today and sharp declines might spur euro weakness.

GBP

The pound continued to sell off against its counterparts, despite the lack of any clear catalysts. Traders seem to be unwinding their previous long positions spurred by rate hike expectations, as recent reports from the UK seem to suggest that tightening will be pushed back further. UK net lending to individuals and CBI realized sales data are up for release today.

CHF

The franc followed in the euro’s footsteps and advanced against its rivals, as risk aversion came into play. There were no reports out of Switzerland yesterday and none are due today, suggesting that the current trend might carry on.

JPY

The yen was able to take advantage of the run in risk aversion, as Asian equities are mostly weaker. There were no reports out of Japan yesterday while today also has an empty docket, indicating that sentiment could keep pushing yen pairs around.

Commodity Currencies (AUD, NZD, CAD)

The comdolls resumed their slide in recent trading sessions, weighed down by falling commodity prices and concerns in China. News reports showed that the Chinese government is being more open to foreign investment and that the PBOC might be ready to ease again, putting risk aversion back in play. There are no reports lined up from the comdoll economies today.

By Kate Curtis from Trader’s Way