The US dollar regained ground against its major FX trading counterparts when risk aversion popped its head back in the financial markets. Talks of a Greek exit have somehow weighed on sentiment, favoring the lower-yielding dollar. There were no major reports released from the US economy yesterday while today has the retail sales figures on tap. The headline figure could show a 0.4% decline while the core figure might also indicate a 0.4% drop, although an upside surprise is possible since jobs data have been strong.
The euro remained weak against its FX trading rivals as the lack of progress on the Greek debt deal weighed on the currency. There have been no reports released from the euro zone yesterday while today has the German final CPI and euro zone industrial production data due. Stronger than expected figures could give the shared currency a chance to recover yet market watchers are likely to stay focused on the Greek debt situation.
FX Trading News
The pound gave back some of its recent FX trading gains, as traders booked profits ahead of today’s BOE inflation report. There were no reports released from the UK yesterday. BOE Governor Carney is expected to stay upbeat despite the recent fall in inflation and reiterate that this could lead to stronger consumer spending. Hawkish remarks could lead to more gains for the pound while a more cautious outlook could lead to a selloff.
The franc continued to move sideways, waiting for a stronger catalyst to push it in a particular direction. There were no reports released from Switzerland yesterday and none are due today, suggesting that the FX trading consolidation could continue unless its counterparts have a strong catalyst.
The Japanese yen managed to regain ground despite the lack of FX trading liquidity in the markets yesterday. There were no reports released then since Japanese banks were closed for the holiday while today’s schedule is also empty, hinting that yen pairs could move in accordance with risk flows.
The comdolls once again weakened across the board, especially after Australia printed a weaker than expected employment report earlier today. The economy lost 12.2K jobs in January, worse than the projected 4.7K drop. This brought the jobless rate up from 6.1% to 6.4%, which is its highest level in a decade, and led to stronger expectations of a rate cut in their upcoming rate statements. There are no other major reports lined up from these economies today.
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