Daily FX Trading Update: Brexit Survey Results Drag GBP Down

The US dollar was mostly weaker against its peers in recent trading sessions as market watchers probably booked profits ahead of this week’s FOMC statement. There were no reports released from the US economy yesterday while today has the retail sales reports due. Analysts are expecting to see 0.4% gains for both headline and core figures, although the downbeat jobs figures for the same month probably weighed on spending.
The euro rebounded against some of its counterparts even though there were no reports released from the region. For today, the euro zone employment change and industrial production numbers are due. Employment likely rose 0.2% in the first quarter while industrial production is projected to have rebounded by 0.7%.
The pound suffered another round of weakness when the latest Brexit surveys showed a lead in favor of those voting to exit the EU. The UK CB leading index stayed flat while today has the CPI readings on tap. Headline CPI could rise to 0.4% while core CPI might climb to 1.3% but traders are likely to pay closer attention to Brexit-related updates.
The franc was able to take advantage of dollar weakness and the risk-off flows in the European region. There were no reports out of Switzerland yesterday while today has the PPI on tap. Producer prices might post a 0.1% uptick, slower than the previous 0.3% gain.
The yen took advantage of the run in risk aversion yesterday, as traders seemed to have a stronger preference for the Japanese currency against the dollar. Japan’s industrial production figure was upgraded from 0.3% to 0.5%, higher than the forecast at 0.4%.
Commodity Currencies (AUD, NZD, CAD)
The comdolls returned some of their recent wins as risk aversion returned to the financial markets. Data from China was mostly weaker than expected, as fixed asset investment and retail sales fell. In Australia, the NAB business confidence index fell from 5 to 3 to show weaker optimism. No other reports are lined up from the comdoll economies today.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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