Daily FX Trading Update: Risk Appetite Retreats Ahead of Busy Week

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USD
The US dollar tossed and turned on Friday as traders tried to price in odds of a Fed rate hike for this month or December. There were no major reports out of the US economy then while today has only a speech by FOMC member Brainard lined up. Dovish remarks could continue to dampen September hike expectations while reassuring comments could keep December tightening in play.
EUR
The euro managed to regain ground against most of its peers towards the end of the week despite weaker than expected medium-tier data from the region. Germany’s trade balance and the French industrial production report both missed expectations. Only Italy’s quarterly unemployment rate is due from the euro zone today.
GBP
The pound was still reeling from the BOE Inflation Report hearings at the end of the week as traders readjusted their biases for the BOE statement later this week. UK goods trade balance came in line with expectations at a deficit of 11.8 billion GBP compared to the earlier 12.9 billion GBP shortfall. The CB leading index is due today.
CHF
The franc gave up some of its recent gains on Friday when the Swiss jobless rate rose from 3.3% to 3.4% once more. There are no reports due from the Swiss economy today so franc pairs could hold steady ahead of the SNB decision later this week.
JPY
The yen sold off against its peers once more despite the tertiary industry activity index coming in line with expectations at 0.3%. Over the weekend, Japan reported a stronger than expected 4.9% rebound in core machinery orders. Preliminary machine tool orders data are due today.
Commodity Currencies (AUD, NZD, CAD)
The comdolls were mostly weaker on Friday as risk aversion was in the markets. China printed a weaker than expected CPI of 1.3%, down from the earlier 1.8% figure, after Australia printed a 4.2% slump in home loans. Canada showed a larger than expected 26.2K gain in hiring versus the projected 16.0K gain but the jobless rate rose from 6.9% to 7.0%.
To contact the reporter of the story: Samuel Rae at samuel@forexminute.com
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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.