Forex Major Currencies Outlook (April 11, 2014)

Initial jobless claims came in stronger than expected at 300K versus the estimated 314K figure while import prices posted a better than expected 0.6% increase. For today, the US core and headline PPI are up for release along with the preliminary UoM consumer sentiment figure for March. Stronger than expected figures could help the Greenback hold on to its latest gains while another set of weak data could put it back in selloff mode.

EUR

The euro was able to advance against the US dollar in recent trading but it gave up ground to the Japanese yen. Data from the euro zone was actually weaker than expected, with bleak French and Italian industrial production figures. There are no major reports due from the euro zone today so traders might be keen to book profits off their euro longs.

GBP

The pound retreated to the dollar and the yen in recent trading when the BOE decided to keep monetary policy unchanged for the meantime. Carney didn’t get a chance to give his usual hawkish remarks as there was no press conference scheduled after the rate statement, which means that traders will have to wait for the release of the BOE meeting minutes to see if the rest of the MPC members agree with Carney’s forecast of hiking rates before the UK general elections in May next year. UK CB leading index is due today but this might not have a huge impact on pound movement.

CHF

The franc extended its rally to the dollar, despite the lack of top-tier data from Switzerland. Traders are just taking advantage of dollar weakness and the franc is a viable option when pursuing risk-off market moves. There are still no reports due from Switzerland today as USD/CHF approaches a key support area around .8600 to .8700.

JPY

The yen continued to gain ground against the dollar and the rest of its forex counterparts when the BOJ meeting minutes revealed that the central bank isn’t considering additional easing moves for now. No other major reports are due from Japan for the rest of the week so the yen might be able to hold on to its recent wins.

Commodity Currencies (AUD, NZD, CAD)

The comdolls continued to rally despite the quick pullbacks that occurred later on. The Australian dollar got a strong boost from better than expected employment data but returned some of its gains when China printed a bleak CPI reading of 2.4% for March. Data on Chinese new loans and money supply is due in the next few hours and might still have a say on Aussie price action. No other reports are lined up from the comdoll economies today as their currency price movement might depend on risk sentiment and US reports.

By Kate Curtis from Trader's Way