The US dollar took some hits once more as Trump decided to fire Secretary of State Tillerson and could also sack other officials that disagree with him. He also reiterated plans to impose higher tariffs on China, reviving fears of a trade war. Data has been within expectations as both headline and core CPI posted 0.2% gains. Retail sales data is due today and slightly stronger gains for both headline and core versions are eyed.
The euro had a mixed round as it reacted mostly to its counterparts on the lack of major catalysts from the region. There are still no major reports lined up today, which suggests that the shared currency could exhibit more or less the same behavior.
The pound was on stronger footing in recent sessions even though there were no major reports out of the UK economy. EU head Juncker had some warnings for the British economy for choosing to exit the union but this was greeted by cheers from MPs as confirmed the Brexit date for 2019. There are no reports due from the UK today.
The franc was also sensitive to its counterparts price action but was able to score more gains when the dollar weakened. There were no reports out of the Swiss economy then and none are due today.
The yen was one of the top performers as it took advantage of dollar weakness and drew support from stronger calls for Abe’s resignation on the political scandal and alleged cover-up. Core machinery orders posted a stronger than expected 8.2% gain versus the estimated 5.3% increase while the BOJ minutes didn’t contain any surprises.
Commodity Currencies (AUD, NZD, CAD)
The Loonie was still in a weak spot, especially when BOC head Poloz sounded less inclined to dole out rate hikes in the coming months. Data from China was upbeat, with both industrial production and fixed asset investment beating estimates. New Zealand’s GDP report is due next and a 0.8% expansion is eyed, stronger than the earlier 0.6% growth figure.