The US dollar regained ground against its forex peers when the drop in oil prices brought risk aversion back. There were no reports out of the US economy then while today has the retail sales due. Headline consumer spending could fall by 0.1% while core consumer spending could show a 0.1% drop, with weaker than expected data likely to push the Greenback down.
The euro retreated to the dollar and yen but managed to stay afloat against comdolls. There were no reports released form the euro zone yesterday while today has the French final CPI and quarterly employment change numbers for the region.
The pound took a break from its climb in recent trading sessions, possibly because traders are positioning ahead of a downbeat BOE statement. There were no reports released from the UK economy yesterday and there are still no reports due today.
The franc took its cue from the euro and gave back its recent wins to the dollar. There were no reports out of Switzerland yesterday and none are due today so the franc might just trail the euro or react to market sentiment.
Yen pairs are trading carefully ahead of the BOJ statement, although no actual policy changes are expected for now. The central bank just implemented negative deposit rates in their previous statement and might sit on its hands for now. Any indication that further easing measures are in the cards could mean more yen losses.
Commodity Currencies (AUD, NZD, CAD)
The comdolls retreated in recent sessions when the OPEC monthly report showed revisions in supply and demand forecasts. Also the OPEC meeting appears to have been postponed for April, keeping the uncertainty on a proposed production cap in play. New Zealand’s GDT auction is coming up next.
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