Forex Major Currencies Outlook (Feb 10, 2017)

Equity indices closed at record highs, buoyed by a pickup in aviation shares on promises of reform in that industry as well. Initial jobless claims turned out better than expected at 234K versus 249K, reflecting strong hiring momentum, while final wholesale inventories came in line with expectations of a 1.0% increase. 

EUR

The euro caved to dollar strength and was also weaker against the commodity currencies. German trade balance turned out weaker than expected at a smaller surplus of 18.4 billion EUR versus the estimated 23.2 billion EUR figure. French and Italian industrial production numbers are due today, along with the French preliminary non-farm payrolls figure. 

GBP

The pound gave up ground to the dollar but managed to hold on to some of its recent gains against the rest of its peers. There were no major reports out of the UK economy yesterday while today has manufacturing and industrial production numbers due. Manufacturing production could post a 0.3% uptick while industrial production could indicate a 0.2% decline.

CHF

The franc was weaker across the board as traders transferred some of their safe-haven holdings to the dollar. Also, market watchers are wary of the tax reform referendum in Switzerland and what it could mean for jobs and the economy. The Swiss jobless rate was unchanged at 3.3% and there are no reports due today. 

JPY

The Japanese yen was a big loser in recent sessions as traders renewed their long dollar positions. Apart from that, traders are wary of currency manipulation being discussed by Trump and Abe during their meeting today. Japan's tertiary industry activity index is due next and a 0.1% decline is eyed. 

Commodity Currencies (AUD, NZD, CAD)

The Kiwi was off to a weak start due to the RBNZ's slightly dovish tone during their policy statement while the rest of the comdoll gang tried to put up a fight against USD strength. Canada's jobs report is due today and a 10.1K drop in hiring is eyed while the jobless rate could hold steady at 6.9%. China's trade balance is due next and a strong read could reinforce comdoll gains. 

By Kate Curtis from  Trader's Way