Daily Market Outlook by Kate Curtis from Trader's Way

[katetrades]

Forex Major Currencies Outlook (October 24, 2013)

USD

The U.S. dollar was able to take a breather from its recent selloff in yesterday’s trading, as it was boosted by risk aversion during the Asian session. Against the Japanese yen though, the U.S. dollar was stilal weaker as the lower-yielding yen proved to be the preferred safe-haven alternative. There were no major reports released from the U.S. during the New York session, but most dollar pairs were able to recover as risk appetite improved later on.

EUR

The euro dipped a bit lower against the dollar during the Tokyo session but bounced back in the U.S. session. EUR/JPY also made a quick recovery after dipping below the 134.00 mark, even though euro zone data was actually weaker than expected. Belgium printed a weaker than expected NBB business climate reading while overall euro zone consumer confidence made no improvement from the previous -15 reading. For today, German and French euro zone PMIs are up for release and stronger expansions are expected for their manufacturing and services sectors.

GBP

The pound let go of some of its recent gains to the dollar and yen but it bounced back immediately when the BOE meeting minutes turned out more hawkish than expected. Policymakers were unanimous in voting to keep interest rates and bond purchases unchanged, but what surprised market participants was their decision to upgrade growth forecasts. They also predicted that the labor situation would improve faster than initially estimated. UK CBI industrial order expectations data is up for release today and an improvement could echo the BOE’s upbeat outlook and push the pound higher.

JPY

The yen was a big winner in yesterday’s trading, as the lower-yielding currency was able to take advantage of risk aversion. News of China’s surging money market rates prompted concerns about liquidity and a potential growth downturn, which led traders to let go of their higher-yielding and riskier holdings. There were no reports released from Japan yesterday and there are none lined up for today so the yen might keep reacting to risk sentiment.

CHF

The franc extended its wins to the dollar, as the USD/CHF pair is close to testing 0.8900 support. There were no reports released from Switzerland but the risk off environment still boosted the franc, as it appeared to be the better safe-haven alternative compared to the U.S. dollar. There are still no reports due from Switzerland today so risk sentiment might be a major driver of price action once more.

Commodity Currencies (AUD, NZD, CAD)

The comdolls gave up a lot of ground to the yen and the dollar as risk aversion dominated price action yesterday. The Australian dollar was barely lifted by the better than expected quarterly CPI reading of 1.2% but it seems to be drawing support from the stronger improvement in the Chinese HSBC flash manufacturing PMI report for October, which climbed from 50.2 to 50.9. Meanwhile, the Loonie lost traction when the BOC downgraded its forecast for this year until 2015, even though the central bank maintained monetary policy. New Zealand printed a smaller than expected trade deficit but the previous month’s figure suffered a downward revision.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (October 25, 2013)

USD

The US dollar had a mixed performance yesterday, as it managed to extend its gains against the commodity currencies but was stuck in consolidation to the euro and the yen. USD/JPY is stalling above the 97.00 mark, as though waiting for a larger catalyst for a breakout in either direction. Yesterday’s set of reports printed weak results as the trade balance was better than expected but the flash manufacturing PMI and initial jobless claims were both below consensus. The trade deficit narrowed to 38.8 billion USD, reflecting an improvement in export activity. The flash manufacturing PMI slipped from 52.8 to 51.1 in the current month, which means that the industry expansion was slower in October. Meanwhile, jobless claims came in at 350K, slightly higher than the expected 343K reading. US durable goods orders data are up for release today and the core figure is expected to show a 0.6% uptick while the headline figure could print a 1.7% increase.

EUR

The euro was unable to make significant headway past the 1.3800 handle against the U.S. dollar, as most of the PMI figures from Germany and France came in below expectations. French flash manufacturing PMI even printed a contraction for the month, as the reading fell from 49.8 to 49.4 instead of improving to 50.3. German flash services PMI was weaker than expected at 52.3 versus the expected rise to 53.8 while the previous month’s figure was revised down to 53.7. For today, German Ifo business climate data is due and an improvement from 107.7 to 108.2 is eyed.

GBP

The pound was sold off against most of its counterparts yesterday, as the CBI industrial order expectations came in much weaker than expected. The report printed a surprisingly downbeat -4 reading versus the consensus of an improvement from 9 to 10. UK preliminary GDP for Q3 2013 is up for release today and a downside surprise might be in the cards, given the recent disappointment in PMI figures. A growth figure of 0.8% is expected for the period.

CHF

The lack of data prevented the franc from extending its gains against the US dollar yesterday, as USD/CHF was stuck above the .8900 major psychological level. There are still no reports due from Switzerland today, as US data could dictate whether the pair would break down or make a quick bounce. Watch out for the release of the US durable goods orders data during the New York session if you’re waiting for this pair to pick a direction.

JPY

The yen also had a mixed performance similar to the dollar yesterday, as USD/JPY was stuck in consolidation while comdolls gave up ground to the Japanese currency. There were no reports released from Japan then but earlier today, the CPI figures fell short of expectations. Tokyo printed a 0.3% uptick in core price levels, lower than the estimated 0.4% increase, while the national core CPI was at 0.7%.

Commodity Currencies (AUD, NZD, CAD)

Comdolls gave up more ground to the dollar and the yen as risk remained off yesterday. Better than expected Chinese flash manufacturing PMI was not enough to keep the Aussie and Kiwi supported, while the Loonie chalked up more losses because of the recent growth downgrades from the BOC. There are no reports due from the comdoll economies today so it should be all about risk sentiment driving price action.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (October 29, 2013)

USD

The US dollar made a feeble recovery against its major counterparts on Monday, as the safe-haven currency gained against the British pound and the Swiss franc. It also extended its gains against the commodity currencies as risk remained off in the financial markets. Data from the US economy was much weaker than expected, as the pending home sales report printed a 5.6% decline versus the estimated 0.5% rebound. Medium-tier figures, such as capacity utilization and industrial production, printed better than expected results. For today, US core retail sales, PPI, and CB consumer confidence are up for release. US retail sales are projected to be up by 0.2% for the headline figure and 0.4% for the core figure, while consumer confidence is likely to decline from 79.7 to 75.2.

EUR

The euro stayed in consolidation against the US dollar and lost a bit of ground to the yen, as there were no major reports released from the euro zone yesterday. Germany’s GfK consumer climate index is the only release lined up from the euro zone today so it could have a strong impact on euro pairs. The reading is projected to climb from 7.1 to 7.3, reflecting increased optimism for the euro zone’s largest economy. A weaker than expected figure, on the other hand, could lead to a euro selloff as it would imply weaker confidence.

GBP

The pound gave up a lot of ground to its major counterparts in yesterday’s trading, pushing GBP/USD down to the 1.6100 area and GBP/JPY down to 157.00. Data from the UK was weaker than expected as the CBI realized sales figure plummeted from 34 to 2 instead of just dipping to 33. Also, MPC member Dale gave a testimony and remarked that the option of further easing is still on the table for the BOE. This was enough to trigger a pound selloff as traders were reminded that the UK has printed weak data recently. UK net lending to individuals data is up for release today along with the mortgage approvals report.

CHF

The franc retreated to the US dollar in yesterday’s trading since there just wasn’t enough buying power to sustain a break below USD/CHF’s .8900 level. There were no reports released from Switzerland yesterday and there are none due today, which suggests that the pair might keep pulling back depending on how US data turn out.

JPY

The yen managed to close most of the weekend gaps against its counterparts, as Japan printed strong data. Household spending and retail sales were both better than expected while the jobless rate was as expected at 4.0%. Household spending increased by 3.7% from a decline of 1.6% while retail sales grew 3.1% instead of the estimated 1.9% rise. No other reports are due from Japan today so these recent upbeat figures might be enough to keep the Japanese currency supported.

Commodity Currencies (AUD, NZD, CAD)

The comdolls continued to give way to the dollar in yesterday’s trading, as sentiment for these currencies was mostly bearish. AUD/USD slid to the .9500 area while NZD/USD edged lower to .8300. There were no reports released from Australia and New Zealand yesterday and there are none due today. As for Canada, BOC Governor Poloz is set to give a speech that might clarify the BOC’s change in monetary policy bias. Also due from Canada are medium-tier inflation reports.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (October 30, 2013)

USD

The US dollar was able to advance against its major counterparts in yesterday’s trading as risk aversion kept the lower-yielding currency afloat. Data from the US was mostly weaker than expected, as the headline retail sales figure showed a 0.1% decline while the core report showed a 0.4% increase. CB consumer confidence chalked up a very sharp drop in October because of the government shutdown, as the reading fell from 80.2 to 71.2. The FOMC is set to announce its monetary policy decision today and no changes are expected, as the recent downturn in the economy isn’t likely to convince the Fed to taper. Also due today is the ADP non-farm employment change which could elicit a similar reaction to the NFP release.

EUR

The euro finally broke out of its consolidation to the dollar yesterday but, unfortunately for the shared currency, the breakout was to the downside. There were no major reports released from the euro zone yesterday so the euro was weighed down by risk aversion. For today, a bunch of medium-tier reports from individual euro zone economies are up for release. Germany is set to report its unemployment change figure and possibly report a small increase in joblessness of 1K versus the previous 25K reading. Meanwhile, Spain is expected to exit its recession with 0.1% growth for the third quarter of the year.

GBP

The pound continued to slide lower against the US dollar in yesterday’s trading as risk-taking was kept at bay. Data from the UK was actually stronger than expected, as both net lending to individuals and mortgage approvals printed higher than estimated results, but these weren’t enough to provide support for the pound. There are no reports due from the UK today so it could be mostly market sentiment that would drive pound price action.

CHF

The franc was unable to make any headway past the US dollar in yesterday’s trading, as USD/CHF pulled up to the .9000 major psychological level. There were no reports released from Switzerland yesterday, which explains why the franc was unable to put up a good fight. For today, the UBS consumption indicator and KOF economic barometer are up for release and improvements could be enough to push USD/CHF back in selloff mode.

JPY

The yen edged a little higher against its rivals yesterday when risk aversion provided support for the lower-yielding currency. At the same time, Japan printed better than expected household spending and retail sales figures. Earlier today though, industrial production missed the consensus of a 1.8% increase and posted a mere 1.5% rise. The previous figure was also revised down to show a 0.9% decline. No other reports are due from Japan today so the yen might be sensitive to risk flows once more.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were once again victim of risk aversion, as they extended their losing streak to the dollar. However, the Loonie’s losses were a little more subdued even though medium-tier inflation reports from Canada were weak. Australia reported a strong 6.4% increase in HIA new home sales in today’s Asian session while the RBNZ is gearing up to make its interest rate decision in the next Asian session. Pricing in of expectations for downbeat remarks could weigh on the Kiwi for today though.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (October 31, 2013)

USD

The US dollar staged a surprise rally after the FOMC interest rate decision, as Chairman Bernanke sounded less dovish with his economic assessment and outlook. In fact, the Fed head made no mention of any delays in the taper because of the recent government shutdown or downturn in hiring. This was enough for some traders to start pricing in the possibility of a December taper should economic conditions improve in the coming weeks. As for data, the ADP non-farm employment change was weaker than expected at 130K versus the 151K estimate. For today, US initial jobless claims and Chicago PMI are up for release. Jobless claims are projected to show a 341K figure while the Chicago PMI could print a drop from 55.7 to 55.1.

EUR

The euro traded lower against the US dollar after the FOMC interest rate statement, despite the recent improvements in the euro zone. Germany’s unemployment change figure came in close to consensus with a mere 2K rise in joblessness while Spain confirmed that it was out of a recession with its 0.1% growth figure. German retail sales and GfK consumer climate data are up for release today, along with French consumer spending and overall euro zone jobs data. Small improvements are eyed for Germany’s figures, which might be enough to keep the euro supported.

GBP

The pound edged lower to test the 1.6000 major psychological level against the US dollar in yesterday’s trading, despite the lack of data from the UK. Earlier today, GfK consumer confidence declined from -10 to -11 instead of improving to -8. Only the Nationwide HPI is left on the UK’s economic schedule for today and a 0.7% increase in house prices is expected. This isn’t a major economic report so it’s likely that GBP/USD will be stuck in its current levels unless there’s a major change in market sentiment.

CHF

The franc was able to gain against the US dollar when Switzerland printed a better than expected KOF economic barometer reading, but these gains were wiped out when the FOMC statement turned out less dovish than expected. The KOF figure jumped from 1.54 to 1.72, outpacing the consensus at 1.56. There are no other reports due from Switzerland today so the franc might have to struggle to stay below the .9000 handle if dollar strength is still in play today.

JPY

The yen pairs were stuck in consolidation for the most part as traders awaited today’s BOJ interest rate decision. Data from Japan was weaker than expected yesterday, as the industrial production showed a 1.5% increase instead of the estimated 1.8% growth. Earlier today, the manufacturing PMI release showed an improvement from 52.5 to 54.2.

Commodity Currencies (AUD, NZD, CAD)

The comdolls chalked up another day of losses to the dollar but AUD/USD managed on hold on above .9500 while NZD/USD was able to stay above .8200. The RBNZ decided to keep monetary policy unchanged for now, as inflationary concerns were keeping policymakers from cutting interest rates. Earlier today, Australia reported a strong 14.4% jump in building approvals and a 6.1% increase in import prices. Later on, Canada will print its monthly GDP and possibly show a 0.2% growth figure.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 4, 2013)

USD

The US dollar was able to get a boost from stronger than expected ISM manufacturing PMI for October, as the reading climbed from 56.2 to 56.4 instead of dipping to the consensus at 55.3. There are no reports due from the US today, as sentiment could drive price action. If risk appetite remains low, the US dollar could stay supported against its counterparts for the rest of the New York session.

EUR

The euro was under heavy selling pressure at the end of last week, as ECB officials have hinted that a rate cut is in the cards. Euro zone banks were on a holiday last Friday but the selloff still continued and is likely to carry on for the rest of today’s trading session. For today, Spanish and Italian PMIs are up for release along with the manufacturing PMI for the euro zone region. Weaker than expected readings could lead the euro to suffer a deeper selloff in the London session.

GBP

The pound gave way to dollar strength on Friday, as the UK manufacturing PMI dipped from 56.3 to 56.0 instead of holding steady for the month of October. The construction PMI is due today and it is expected to stay at 58.9 but another downside surprise might lead to pound weakness again.

CHF

USD/CHF climbed higher on Friday when Switzerland’s SVME PMI came in weaker than expected. The actual reading fell from 55.3 to 54.2 instead of improving to 55.4. There are no reports due from Switzerland today so it could be all about risk sentiment driving USD/CHF across the charts. The pair is already approaching a key resistance level and any change in sentiment could lead to a reversal in that area.

JPY

The yen continued to gain against its counterparts since the lower-yielding currency was able to take advantage of strong Japanese data and the low-risk market environment. There were no reports released from Japan last Friday and there are none due today as Japanese banks are on holiday. With that, expect higher volatility among yen pairs and potential swings if risk appetite changes.

Commodity Currencies (AUD, NZD, CAD)

The comdolls still chalked up some losses on Friday even though Australia reported a rise in quarterly producer prices and Chinese official manufacturing PMI came in line with expectations. Over the weekend, the non-manufacturing PMI of China showed an improvement and this might keep the Australian dollar supported for the rest of the day. Australia also printed a better than expected retail sales increase of 0.8% versus the estimated 0.5% uptick. There are no reports due from Canada or New Zealand for the rest of the trading day so risk sentiment could be crucial in determining where these currencies are headed.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 5, 2013)

USD

The US dollar was off to a slow start on Monday and was unable to sustain its rallies from the previous week. Data from the US was a bit weak, as the September factory orders report printed a lower than expected 1.7% increase while the August data showed a 0.1% decline. Around the same time, FOMC members Powell and Rosengren expressed inclination for keeping bond purchases unchanged for the meantime, which suggests that a taper in December is not very likely. US ISM non-manufacturing PMI is up for release today and a dip from 54.4 to 54.2 is expected, but an upside surprise might lead to more gains for the dollar.

EUR

The euro managed to bounce off the recent lows, as euro zone reported an improvement in Sentix investor confidence. The figure climbed from 6.1 to 9.3, surpassing the consensus at 6.3. Spanish manufacturing PMI came in line with consensus at 50.9 while Italy’s PMI fell short at 50.7. Spanish employment change data is up for release today and an increase from 25.6K to 31.3K is expected. Also due today are the EU economic forecasts and any downgrades could spark a deeper selloff for euro pairs.

GBP

The pound was able to hold steady above the 1.5900 major psychological support yesterday when the UK construction PMI came in better than expected. The reading climbed from 58.9 to 59.4 in October, reflecting stronger expansion in the manufacturing sector. The services PMI is up for release today and the index is expected to rise from 60.3 to 60.4, although an upside surprise could also be possible and help the pound extend its gains.

CHF

The franc was stuck in consolidation to the US dollar yesterday but it did manage to score a few gains. There were no reports released from Switzerland then but today could be a different story since the CPI figure is due. The report could show a 0.1% uptick in price levels, a bit weaker compared to the previous 0.3% increase.

JPY

The Japanese yen was able to regain ground against most of its counterparts in today’s trading session after a bit of consolidation yesterday. There were no reports released from Japan then. Today, traders are waiting to hear from BOJ Governor Kuroda and his speech might provide additional volatility for yen pairs towards the end of the Asian session.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were unable to make much headway yesterday, as USD/CAD bounced off the 1.0400 handle while NZD/USD moved sideways around .8250. Data from Australia was mixed, as the HPI disappointed while the retail sales report showed a better than expected 0.8% uptick. The RBA is set to make its monetary policy decision today and possibly highlight the recent improvements in China and Australia. New Zealand jobs data is due in the next Asian session so NZD/USD might see some breakouts then.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 6, 2013)

USD

After a bit of a selloff in the earlier trading sessions, the Greenback regained ground in the New York session when the US economy printed a better than expected ISM non-manufacturing PMI report. The index climbed from 54.4 to 55.4 in October instead of dipping to the estimate at 54.2. This shows that the services sector had a stronger expansion for the month, which spells good prospects for growth and employment. For today, only medium-tier data such as the Challenger job cuts and CB leading index are up for release, both of which are not expected to have significant impact on the dollar’s movement.

EUR

The euro made a bit of headway to the dollar in the Asian and London sessions but gave up its gains when the US session rolled along. Spain’s unemployment change report was worse than expected, as the country posted a 87K increase in joblessness versus the estimate of a 31K rise. Aside from that, the European Commission downgraded their growth and employment forecasts for the entire region, prompting many to speculate that the central bank could boost liquidity in their upcoming rate decision. Spanish and Italian services PMIs are due today, along with German factory orders and euro zone retail sales. Another round of weak data could spark more rate cut or LTRO expectations, which could lead to a deeper euro selloff.

GBP

The pound was able to stay above the 1.5950 support level against the dollar when the UK printed a better than expected services PMI reading. The report showed an improvement from 60.3 to 62.5, outpacing the consensus at 60.4. Manufacturing and industrial production are due today and these should determine whether the pound can keep up its rallies or not.

CHF

The franc gave up most of its recent gains to the dollar in yesterday’s trading as Switzerland’s CPI came in weaker than expected. The report printed a 0.1% drop in consumer price levels instead of the projected 0.1% uptick. There are no reports due from Switzerland today so it could be all about risk sentiment and US data driving USD/CHF.

JPY

The yen had a mixed performance yesterday, as it gained against the euro but consolidated against the pound. There were no major reports released from Japan and the freshly released BOJ meeting minutes contained no surprises. Japan is set to hold its 10-year bond auction in a few hours and this might result to volatility among yen pairs if bond yields spike.

Commodity Currencies (AUD, NZD, CAD)

The comdolls regained ground yesterday on news that China was pumping liquidity again. Aside from that, data from New Zealand turned out better than expected, as the economy showed a 1.2% increase in employment for the third quarter of the year. Australia released a smaller than expected trade deficit of 0.28 billion AUD versus the estimated 0.51 billion AUD. Later on, Canada will print its Ivey PMI and possibly show an improvement from 51.9 to 54.7.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 7, 2013)

USD

The US dollar was mostly stuck in consolidation against its major currency counterparts since there were no top-tier reports released from the US economy. Challenger job cuts data showed a 4.2% decline for October, better than the previous 19.1% increase. Advance GDP and initial jobless claims data are up for release today, as the growth figure could come in at 2.0% while the first-time jobless claimants could reach 336K. Also note that FOMC members Dudley and Stein are set to testify today and possibly cause volatility among dollar pairs should they mention their views on the Fed taper.

EUR

The euro was able to hold on to its current levels against the dollar and yen, as euro zone data came in mixed. Spain’s non-manufacturing PMI was better than expected at 49.6 versus the estimated 48.1 reading and also better than the previous 49.0 figure. However, Italy’s non-manufacturing PMI fell short of consensus at 50.5 versus the estimate at 51.6 and the previous 52.7 reading. Euro zone retail sales disappointed with a 0.6% decline while German factory orders printed an impressive 3.3% jump. The ECB is set to make its interest rate decision today and some are expecting to hear further easing from policymakers. The Spanish and Italian bond auctions are also scheduled today, along with the release of German industrial production data.

GBP

The pound was able to hold on to its gains yesterday, as the currency was supported by stronger than expected services PMI released the previous day and the expected 1.2% increase in manufacturing production. The industrial production component printed a better than expected 0.9% increase. For today, the BOE interest rate decision is expected to spark volatility among pound pairs, depending on how Carney assesses the economic situation.

CHF

The Swiss franc moved sideways to the US dollar yesterday, thanks to the lack of data from both US and Switzerland. Swiss foreign currency reserves data is up for release today and might push USD/CHF in a general direction should the actual figure come in better or worse than expected. Other than that, there are no reports due from Switzerland so USD/CHF might be more sensitive to US data.

JPY

The Japanese yen lost ground to its major counterparts in the earlier trading sessions when risk appetite improved in Asian trading. There were no reports released from Japan, as the yen simply reacted to the Nikkei and other Asian indices closing higher for the day. There are still no reports due from Japan today so yen pairs could be sensitive to risk sentiment yet again.

Commodity Currencies (AUD, CAD, NZD)

The Australian dollar gave up its recent gains to its counterparts when Australia printed a very bleak employment change report. The reading showed a 1.1K increase versus the estimated 10.3K rise while the previous month’s figure was revised down from 9.1K to 3.3K. The jobless rate ticked higher from 5.6% to 5.7%. In Canada, the Ivey PMI came in better than expected as it climbed from 51.9 to 62.8, stronger than the estimated increase to 54.7. There are no reports due from New Zealand but the Kiwi might stay supported because of the gains in hiring in the country. No other reports are due from Canada and Australia as well, so their currencies could react to risk appetite.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 8, 2013)

USD

The US dollar had a topsy-turvy trading day, as it gained ground when the US advanced GDP reading came in better than expected at 2.8% versus the estimate at 2.0% and the previous 2.5% reading. However, traders got hold of the underlying figures and realized that the economy wasn’t as strong as it appeared. As it turns out, much of the GDP increase was simply a result of an increase in stockpiles, which is likely to drop later on. Due for today is the non-farm payrolls figure, which is slated to show a weaker reading for October because of the recent government shutdown.

EUR

The euro got blown out by the surprise rate cut by the ECB from 0.50% to 0.25%. This pushed EUR/USD to the 1.3300 handle before it rebounded to 1.3400 again when traders booked profits. Draghi said that the euro zone is likely to undergo a longer period of low inflation while economic risks remain to the downside. He also reiterated that the ECB has enough easing measures left to implement if necessary. As for exchange rates, he said that there has been no mention of the euro in their latest meeting. Medium-tier reports, such as German trade balance and French consumer spending, are due today.

GBP

The pound was able to stay afloat when the BOE decided to keep monetary policy unchanged. In fact, pound pairs barely had any reaction to this expected result, as traders would rather wait for the minutes of their monetary policy meeting later on. Although GBP/USD declined sharply when the US showed a strong GDP reading, the pair was able to make a quick recovery. The UK is set to print its trade balance today but this isn’t likely to have a strong effect on GBP/USD compared to the NFP.

CHF

The franc lost ground to the dollar when the ECB decided to cut interest rates but resistance at the .9200 levels held for USD/CHF and the pair quickly retreated when the underlying figures of the US GDP weren’t so strong. Swiss SECO consumer climate was weaker than expected as the reading came in at -5, short of the -2 consensus. Swiss retail sales are due today and the annual figure is expected to improve from 2.4% to 2.6%.

JPY

The yen had a volatile trading day, as USD/JPY spiked above 99.00 on the heels of strong US GDP but fell back below 98.00 right away. Against the euro, the yen was able to post a lot of gains when the ECB cut rates. There were no reports released from Japan yesterday and none are due today so yen pairs could stay sensitive to country-specific data and risk sentiment.

Commodity Currencies (AUD, NZD, CAD)

The comdolls gave up some ground to the dollar, which was boosted by a strong US GDP figure. However, these losses were quickly erased and the comdolls managed to hold on to their previous levels. Earlier today, a downbeat RBA statement weighed on the Australian dollar as policymakers decided to downgrade their growth forecasts for 2014. Up ahead, Canada is set to print its employment change report and jobless rate, as weaker than expected readings could push USD/CAD up the charts.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 11, 2013)

USD

The US dollar was able to pack in plenty of gains on Friday when the October NFP release came in much better than expected. The actual figure showed a 204,000 rise in net hiring instead of falling to 120,000 because of the government shutdown. Aside from that, the previous month’s figure was revised up to 163,000, showing a good trend in hiring. Traders took this as a sign that the Fed could start reducing stimulus before the year ends, which provided support for the dollar. This positive sentiment could carry on today as US banks are on holiday because of Veterans Day.

EUR

The euro gave up ground to the dollar on Friday again when the US non-farm payrolls release turned out better than expected. Data from the euro zone was mostly weaker than expected then, as French industrial production and trade balance both missed expectations. Only the German trade balance turned out stronger than expected but it wasn’t enough to keep the euro afloat. For today, there are no reports from the region as banks are on holiday.

GBP

The pound gave way to dollar strength on Friday as data from the UK was weaker than expected. The trade balance report showed a wider deficit of 9.6 billion GBP instead of the estimated drop from 9.6 billion GBP to 9.1 billion GBP. There are no reports due from the UK today, which suggests that pound pairs might keep moving sideways or resume their previous selloff.

CHF

The franc was no match to dollar strength last week, pushing USD/CHF way past the .9200 resistance level. Swiss retail sales turned out to be a huge disappointment with a mere 1.0% increase, much lower than the estimated 2.6% figure. Analysts were expecting to see a small improvement from the previous month’s 2.4% reading. There are no reports due from Switzerland today so USD/CHF might keep heading higher on broad dollar strength.

JPY

USD/JPY finally showed signs of breaking out form the long-term consolidation pattern as the US showed a strong jobs figure. There were no reports released from Japan then, leaving the yen at the mercy of market sentiment. For today, Japan released a weaker than expected current account deficit of 0.13 trillion JPY versus the estimated at 0.10 trillion JPY. No other reports are due from Japan for the rest of the day.

Commodity Currencies (AUD, NZD, CAD)

The comdolls caved to the dollar on Friday, although the Loonie did enjoy some resiliency thanks to better than expected Canadian jobs data. The employment change figure for Canada was up by 13.2K versus the consensus of a 12.7K rise while the jobless rate improved to 6.9%. Over the weekend, Chinese data came in mostly below consensus and weighed on the Australian dollar. CPI was at 3.2%, lower than the 3.3% estimate, while PPI printed a larger than expected 1.5% decline. There are no reports due from the comdoll economies today as the currencies could consolidate or be sensitive to risk sentiment.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 12, 2013)

USD

Despite the thinner trading conditions during the US holiday, the dollar was still able to stay supported from last week’s strong NFP release. EUR/USD retraced to the 1.3400 handle and consolidated there while USD/JPY pushed for more gains. There’s still not much in the way of US economic data for today so it could be all about consolidation once again, unless talks of a December taper push the dollar much higher.

EUR

The euro is stuck around the 1.3400 handle for now, as traders await for more direction from euro zone data. Unfortunately, only a couple of medium-tier data from Germany is due and these aren’t likely to push the euro in a general direction. Be mindful of risk sentiment and additional updates from the euro region when trading euro pairs today.

GBP

The pound is still putting up a good fight against the US dollar for now, as it struggles to stay above the 1.5950 mark. UK CPI figures are up for release later today and weaker inflation of 2.5% versus the previous 2.7% is eyed. Other inflation reports are also due, which might provide clues on future inflation and potential monetary policy adjustments.

CHF

The Swiss franc was able to recover some of its losses to the dollar yesterday but it seems that more weakness is in the cards for today. The pair is still holding above the .9200 major psychological level. There are no reports due from Switzerland today so it could be all about risk sentiment driving USD/CHF today.

JPY

The yen gave up some ground to its counterparts today when data from Japan was weaker than expected. The tertiary industry index showed a drop of 0.2% versus the projected 0.2% uptick while consumer confidence fell to 41.2, reflecting lower optimism. The Nikkei also closed higher for the day, which suggests that the positively correlated USD/JPY could go for more gains.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were weaker in Asian trading today as China showed signs of bank tightening. In addition, the higher-yielding currencies saw limited buying potential as many worried that a Fed taper could undo most of the progress made in terms of export demand. Australian business confidence posted a decline from 12 to 5, lending further weakness to Aussie pairs.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 13, 2013)

USD

The US dollar had a mixed performance in yesterday’s trading as it lost a bit of ground to the euro but made headway against the pound and the yen. There were no major reports released from the US economy then but the return of traders from their Veterans’ Day holiday was enough to bring strong moves back in the charts. Only the 10-year bond auction and Federal budget release are scheduled from the U.S. today so dollar pairs could continue to react to currency-specific events.

EUR

The euro was able to make headway against the dollar and the yen in yesterday’s trading, despite the recent ECB interest rate cut. Optimistic estimates for the upcoming GDP releases were enough to provide support for the shared currency, as there were no major reports released yesterday. For today, euro zone industrial production data is due and a 0.2% decline is expected.

GBP

The pound gave up a lot of ground to its major counterparts in yesterday’s trading when the UK CPI figure came in much weaker than expected. Analysts projected a decline from 2.7% to 2.5% but the actual figure landed at 2.2%, indicating that the BOE could still have room to ease if needed. Claimant count change data is due today and a 33.2K decline in the number of those claiming jobless benefits is expected. The jobless rate is estimated to improve from 7.7% to 7.6%, which might provide support for the pound.

CHF

The franc managed to put up a decent fight against the dollar, keeping USD/CHF still below the .9200 major psychological resistance. There were no reports released from Switzerland yesterday and there are none due today, which suggests that USD/CHF might hover around the .9200 handle until the next big catalyst comes along.

JPY

The yen gave up most of its recent gains to its major counterparts yesterday when the Nikkei stock index closed positive. Data from Japan was also weaker than expected, with consumer confidence declining and the tertiary industry activity showing a 0.2% drop. For today, core machinery orders printed a weaker than expected figure of -2.1% versus the estimate of a 1.8% drop, which might keep weighing on the yen for the rest of the day.

Commodity Currencies (AUD, NZD, CAD)

The comdolls lost ground yesterday even though there wasn’t much in terms of economic data. Updates from China’s 3rd Plenum seemed to disappoint traders, as the government focused on land reforms and social security changes instead of the aggressive plans to boost economic growth. Australia’s wage price index came in weaker than expected today and this might keep weighing the Aussie down. Later on, New Zealand will print its quarterly retail sales figures and possibly show weaker spending.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 14, 2013)

USD

The US dollar was wiped out yesterday when the prepared text of Janet Yellen’s speech was released. The transcript revealed what many were expecting, that Yellen would likely keep stimulus in place until the economy is able to show a significant recovery. In particular, she noted that the improvement in labor and inflation is still far from reaching its potential. She is set to give this testimony in front of the Senate Banking Committee today and she will be interviewed there as well. Her responses to economic questions and her plans for monetary policy could determine how the dollar will trade today.

EUR

The euro recovered to the dollar despite the downbeat remarks from several ECB officials. Some have noted the slow progress in the economy and the central bank’s openness to negative deposit rates, driving the shared currency lower in the London session. However, dollar weakness was the main theme for the US session, allowing EUR/USD to recover above 1.3400. Euro zone GDP figures from the region’s largest economies are up for release today and stronger than expected results might keep the euro afloat.

GBP

The pound got a strong boost from better than expected jobs data, as the claimant count change printed a 41.7K decline. The jobless rate improved from 7.7% to 7.6%, reflecting a continuous rebound in hiring for the UK economy. The BOE inflation report also provided support for the pound when the central bank policymakers predicted that the UK will reach its employment targets earlier than initially projected. For today, UK retail sales are up for release and a flat figure is projected to follow the previous 0.6% uptick.

CHF

The franc regained ground against the dollar and fell deeper below the .9200 handle when the US released the transcript of Yellen’s upcoming speech. There were no reports released from Switzerland then, as USD/CHF’s move was mostly a result of dollar weakness. Swiss PPI is up for release and a 0.3% uptick in producer prices is eyed.

JPY

The yen continued to lose to its major counterparts in yesterday’s trading, as the Nikkei stock index posted gains. Data released from Japan earlier today came in better than expected, with the preliminary GDP reading showing a 0.5% uptick. The revised industrial production report is due today but this isn’t likely to cause waves among yen pairs, as their behavior could hinge on the performance of Asian markets again.

Commodity Currencies (AUD, NZD, CAD)

The comdolls took advantage of dollar weakness in yesterday’s trading, as AUD/USD, USD/CAD, and NZD/USD bounced off key levels. New Zealand retail sales was weaker than expected as the headline figure showed a 0.3% uptick instead of the 0.9% estimated increase while the core figure showed a 0.1% decline. Canadian trade balance is up for release later today and a smaller deficit is expected.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 15, 2013)

USD

The US dollar’s reaction to Yellen’s confirmation speech was already priced in, as the text of the testimony was released a day ahead. Because of that, there were no wild moves among dollar pairs during the actual event, although it did see a quick selloff when Yellen mentioned that there are several risks in withdrawing stimulus too soon. Data from the US echoed Yellen’s downbeat assessment, as the initial jobless claims and trade balance both came in below expectations. For today, the Empire State manufacturing index, import prices, industrial production and capacity utilization rate are up for release. These medium-tier figures aren’t expected to trigger a sharp reaction from the dollar but it could be in for more weakness if all the figures come in weak.

EUR

The euro struggled to hold ground against the dollar when euro zone GDP came in mixed. Germany’s growth was as expected at 0.3%, weaker compared to the previous 0.7% increase, while France showed a contraction of 0.1% instead of the estimated 0.1% growth. Overall, the region’s GDP stood at 0.1%, weaker than the estimate at 0.2% and the previous 0.3% growth. Up ahead, euro zone CPI are up for release and more weakness could spark speculation of further easing from the central bank.

GBP

Despite weaker than expected UK retail sales, the pound managed to stay resilient to the dollar and the yen. Consumer spending ticked down by 0.7% in October instead of staying flat. There are no reports from the UK today so it will be interesting to see whether the pound can keep holding on to its recent gains.

CHF

The franc was moving sideways in yesterday’s trading, as Yellen’s speech didn’t spark much of a ruckus in the markets. Data from Switerland was weaker than expected as producer prices printed a 0.4% decline instead of the estimated 0.3% increase. There are no reports due from Switzerland today so there’s a good chance that USD/CHF might keep consolidating.

JPY

The yen lost a lot of gains to its counterparts as the Nikkei stock index kept surging. For today, the Nikkei opened above 15,000 for the first time in almost half a year, lending more upside for yen pairs. USD/JPY already reached the 100.00 mark and it appears that there’s more upward momentum to the next resistance levels. Japanese preliminary GDP came in stronger than expected at 0.5% and this might keep lifting yen pairs since there are no other reports due from Japan today.

Commodity Currencies (AUD, NZD, CAD)

The comdolls gave up a few gains to the dollar but managed to score wins against the Japanese yen. There wasn’t much data from these economies recently, as medium-tier data from Canada barely resulted to pronounced gains or losses for the Loonie. Only Canadian manufacturing sales is left on deck for today and analysts foresee a 0.5% rebound from the previous 0.2% decline. Stronger than expected results might keep the Loonie afloat.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 18, 2013)

USD

The US dollar weakened against most of its counterparts on Friday, as data from the US turned out below expectations. The Empire State manufacturing index printed a surprise negative figure, as it slipped to -2.2 instead of rising to the estimate at 5.2. Industrial production, capacity utilization, and import prices also came in the red. For today, only medium-tier data such as foreign securities purchases and a couple of speeches from FOMC officials are lined up. Expect quiet trading for most dollar pairs unless we hear of surprising comments from Dudley and Rosengren.

EUR

The euro was able to advance against the Greenback and the yen on Friday, thanks to an improvement in market sentiment and overall lack in demand for the dollar and the yen. Data from the euro zone came in line with consensus, as the CPI figure showed a 0.7% increase while the core version of the report printed a 0.8% uptick. For today, there are no major reports from the euro zone so EUR/USD and EUR/JPY might see quiet trading ahead.

GBP

The pound gapped up over the weekend, following Friday’s strong rally against the dollar and the yen. There were no reports released from the UK economy then but the previous days’ worth of data was enough to keep the pound supported against most of its counterparts. For today, the UK just reported a 2.4% decline in house prices for November, enough to remove most of the 2.6% gains seen last October. However, the pound just made a brief dip after the release and might still be on its way up north should sentiment for the UK remain positive.

CHF

There were no reports released from Switzerland last Friday, yet the franc still managed to hold its ground against the US dollar. There are still no reports lined up from Switzerland today though so USD/CHF might be in for more sideways movement below the .9200 major psychological level unless there are economic surprises from the US economy.

JPY

The yen gave up more ground to most of its counterparts on Friday, as the Nikkei climbed to record highs and dwindled demand for the lower-yielding yen. The Japanese equity market continued to take advantage of the improvement in risk sentiment and anticipation of further stimulus from the BOJ. There are no reports due from Japan today so the yen pairs might keep reacting to Nikkei price behavior.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were finally able to recover against the US dollar on Friday, thanks to the weak data from the US economy. Canadian manufacturing sales came in line with consensus at 0.6%, allowing the Loonie to hold its ground. Only the Canadian foreign securities purchases is due from these economies today and this isn’t likely to have a material impact on price action. Risk sentiment could play a bigger role for the next few trading hours.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 19, 2013)

USD

The US dollar extended its losses to its major counterparts in yesterday’s trading, despite the lack of data from the US economy. Risk appetite was still strong, especially after China released the detailed set of economic and financial plans from its third plenum. For today, there are still no major reports lined up from the US but a few FOMC officials are set to testify. These officials have already stated their stances on the taper issue already so their remarks might not trigger such a huge reaction from dollar pairs.

EUR

The euro continued to edge higher against the dollar and the yen, as traders seemed to brush aside the impact of the latest ECB interest rate cut. Data from the euro zone was mixed, with the current account balance coming in below consensus and the trade balance meeting expectations of a 14.3 billion EUR surplus. For today, the German ZEW report could have a stronger impact on the euro, as the actual figure is expected to climb from 52.8 to 54.6.

GBP

The pound managed to stay afloat yesterday but not without a bit of selling pressure, as a BOE survey revealed that systemic risk was becoming a concern for banks and borrowers. Apparently, respondents to the survey believe that the low interest rate environment could soon result to uncontrolled house price inflation, which might then spark an asset price bubble. There are no reports due from the UK today as traders try to position ahead of the release of the BOE meeting minutes later this week.

CHF

The franc extended its gains against the dollar as USD/CHF dipped to the .9100 handle. There were no reports released from Switzerland so the move was mostly a dollar reaction. There are still no reports due from Switzerland today so USD/CHF’s movement could keep relying on dollar behavior and risk sentiment.

JPY

The yen regained ground against most of its major counterparts, as investors believed that a correction was in the cards after consecutive days of rallies. The Nikkei stock index was relatively flat in yesterday’s trading, which explains why the yen managed to recover. There were no reports released from Japan then and there are none due today so the yen pairs could continue to react to Asian equities’ performance.

Commodity Currencies (AUD, NZD, CAD)

The comdolls edged a bit lower yesterday, as risk appetite wasn’t that strong anymore. Besides, a correction from their recent rallies was due, giving traders a chance to enter at better levels if they think the risk rallies will resume. There were no major reports released from Australia and New Zealand, while Canada printed a better than expected foreign securities purchases report. Earlier today, Australia reported a rebound in its CB leading index and released the minutes of the RBA’s latest policy meeting, which revealed that the central bank isn’t likely to cut rates anytime soon. Up ahead, we have PPI figures from New Zealand but this isn’t likely to have a strong impact on NZD price action.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 20, 2013)

USD

The US dollar was unable to pocket more gains, as the risk-on trading environment kept its rallies at bay. There were no reports released from the US but cautious comments from Fed officials weighed on the lower-yielding currency. FOMC member Evans noted that the central bank is close to reaching $1.5 trillion in bond purchases, which led many to believe that the Fed might be forced to taper soon. However, Evans also stressed that the central bank is in no rush to reduce stimulus at this point. Bernanke echoed this stance in saying that interest rates will be kept low until the economic recovery shows strong momentum, and he reiterated that fiscal stability is also a priority. Dollar pairs could see more volatility today as the US releases its retail sales and CPI figures. Weaker than expected reports might trigger a sharp selloff for the dollar.

EUR

The euro managed to extend its gains to the yen and dollar, as EUR/JPY reached a new 4-year high. German ZEW economic expectations came in line with consensus at 54.6 but the euro was weighed down by downbeat remarks from ECB officials. Only the German PPI is up for release from the euro zone today and this isn’t expected to have a huge impact on euro price movement.

GBP

The pound was stuck in its range against the dollar but managed to rebound against the yen in yesterday’s trading, despite the lack of major reports from the UK. For today, the BOE meeting minutes are up for release and traders are expecting to hear positive remarks, as the central bank recently gave upbeat forecasts for hiring. A couple of BOE officials are also set to give speeches today, which might trigger volatility for pound pairs.

CHF

The Swiss franc held on to its current gains to the dollar, as USD/CHF tested the .9100 major psychological support level. There were no reports released from Switzerland then and only the ZEW economic expectations report is due today. The report could show an improvement from the previous 24.9 figure, which might allow USD/CHF to break below .9100.

JPY

The yen continued to weaken against its major counterparts as risk appetite remained strong yesterday. EUR/JPY surged to new 4-year highs while USD/JPY made another test of the 100.00 mark. There were no reports released from Japan yesterday while the trade balance released today was short of expectations at -1.07T JPY vs. the consensus at -0.88T JPY. The all industries activity index is due in today’s Asian session and a small improvement is eyed.

Commodity Currencies (AUD, NZD, CAD)

The comdolls tried to extend their gains to the dollar, as AUD/USD climbed to the .9450 area while NZD/USD stayed above .8350. New Zealand inflation expectations for the quarter was slightly weaker at 2.3% versus the previous 2.4% while the RBA meeting minutes showed that the central bank isn’t looking to cut rates anytime soon. Up ahead we have Canadian wholesale sales and a speech by BOC Governor Poloz, which might spark volatility for Loonie pairs.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 21, 2013)

USD

The US dollar was able to get back on its feet in yesterday’s trading, as the US retail sales report printed better than expected results. Headline retail sales was up by 0.4% while core retail sales edged up by 0.2%. This was stronger than the estimated 0.1% uptick for both. Headline CPI, on the other hand, fell short of consensus as it posted a 0.1% decline instead of the estimated flat reading. Core CPI was as expected at 0.1%. The dollar was also able to draw support from the FOMC meeting minutes, which showed that the Fed is still on track to taper before the end of the year. US PPI, initial jobless claims, manufacturing PMI, and Philly Fed index are up for release today and another round of strong figures could keep the dollar supported.

EUR

The euro gave up its gains to the dollar yesterday when ECB officials hinted that they are considering negative deposit rates. This means that the central bank would be charging banks for keeping cash stored in their vaults, thereby encouraging more lending activity. However, this tends to have a negative effect on overall interest rates, which means lower demand for the euro. Euro zone PMIs are up for release today and disappointments might confirm that further easing from the ECB is likely.

GBP

The pound was unable to keep up its recent rallies when the BOE monetary policy meeting minutes were less hawkish than expected. Apparently, there was some dissent regarding the economic forecasts, as some believed that it would take a longer time for the UK economy to meet its targets. Only public sector net borrowing and CBI industrial order expectations are due from the UK today.

CHF

The franc lost ground to the dollar in yesterday’s trading, triggering a bounce for USD/CHF from .9100 back to the .9200 area. The improvement in Swiss ZEW economic expectations from 24.9 to 31.6 was not enough to keep the franc afloat when the US printed strong consumer spending data. Swiss trade balance is up for release today but this isn’t likely to cause huge moves among franc pairs.

JPY

The yen resumed its selloff against most of its counterparts yesterday as the BOJ policy statement drew closer. Some are expecting to hear hints of further easing or potential stimulus once the sales tax increase rolls along. Aside from that, there are no other reports due from Japan so the BOJ statement could have a longer-term impact on yen pairs.

Commodity Currencies (AUD, NZD, CAD)

The Australian dollar weakened in today’s trading session when China’s manufacturing PMI fell short of expectations. The actual figure came in at 50.4 instead of the estimated 50.9 reading. New Zealand credit card spending ticked lower at 3.2% versus the previous 5.1% reading. Meanwhile, Canadian wholesale sales was weaker than expected at 0.2% instead of the estimated 0.4% uptick, suggesting that consumer spending might be weak too. There are no major reports due from the comdoll economies today.

By Kate Curtis from Trader's Way

 

[katetrades]

Forex Major Currencies Outlook (November 25, 2013)

USD

The US dollar gave up some of its recent gains to its major counterparts on Friday when traders booked profits ahead of the weekend. Against the yen though, the dollar continued its ascent as USD/JPY is now approaching the 102.00 mark. There were no economic reports released from the US economy last Friday. For today, only the pending home sales report is lined up and it is expected to show a 2.2% rebound from the previous 5.6% decline. A stronger than expected figure might provide the dollar another boost in today’s trading sessions.

EUR

The euro rebounded against its major counterparts and broke above the 1.3500 handle on Friday, despite rumors of negative deposit rates. Data from Germany was much stronger than projected, as the Ifo business climate figure surged from 107.4 to 109.3, reflecting stronger optimism in the sector. There are no reports due from the euro zone today so it remains to be seen whether the euro can be able to hold on to its recent gains and go for more.

GBP

The pound is currently testing the top of its range against the US dollar, as optimism for the UK economy lifted the British currency throughout the week. There were no reports released from the UK last Friday and today has only the BBA mortgage approvals data lined up. This is expected to show a small improvement from 43.0K to 45.2K, reflecting stronger demand for home loans and purchases. A higher than expected result could trigger an upside breakout from 1.6250 for GBP/USD while a weak reading might lead to a quick selloff or consolidation.

CHF

The franc resumed its winning ways against the dollar on Friday as USD/CHF sank below the .9100 major psychological level. At the moment, the pair is lingering at the bottom of a falling channel but a breakout could take place if more dollar weakness is seen. Swiss employment level is due today and it is expected to show a small rise from 4.17M to 4.19M.

JPY

The yen kept losing ground to its counterparts last week and until the start of this week, after BOJ officials emphasized their commitment to further easing if needed. Data from Japan is set for release by the end of this week so the yen could keep going on its recent slide unless we see a change in market sentiment.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were still trading on a weak note until the end of the week as commodities also saw strong declines. Gold is trading at its low levels, although analysts are expecting a quick bounce sooner or later. Data from Canada was mixed on Friday, as the core CPI and headline retail sales came in strong but the headline CPI and core retail sales fell short of expectations. There are no reports due from these comdoll economies today so risk sentiment might be a major driving factor.

By Kate Curtis from Trader's Way