Forex Major Currencies Outlook (Feb 14, 2018)

There were also no major reports to prop the US dollar higher while traders price in expectations for weaker inflation data. Headline CPI is expected to rise by 0.3% versus the earlier 0.1% uptick, though, while the core reading could dip from 0.3% to 0.2%. Retail sales figures are also up for release. 

EUR 

The euro was one of the top performers of the day, despite the lack of any major data. Today has German and Italian preliminary GDP figures due early in the London session before the region's flash GDP reading is printed. Analysts are expecting to see another 0.6% expansion, but a stronger than expected read could boost ECB tightening expectations. 

GBP 

The pound drew support from upbeat CPI data, with the headline reading holding steady at 3.0% instead of dipping to 2.9% and the core figure up from 2.5% to 2.7% versus the 2.6% consensus. Only the CB leading index is due from the UK today and another decline could mean pound weakness. 

CHF 

The franc had a mixed run as it reacted mostly to currency-specific data. Swiss PPI beat expectations with a 0.3% gain versus the estimated 0.2% uptick. There are no reports due from Switzerland today but SNB Governing Board member Zurbrugg has a speech lined up. 

JPY 

The yen was also a strong performer as it took advantage of dollar weakness when risk-off flows returned. The preliminary GDP reading printed a weaker than expected 0.1% expansion for Q4 2017 but the earlier figure was upgraded to 0.6% growth. There are no other reports lined up from Japan so market sentiment could push yen pairs around. 

Commodity Currencies (AUD, NZD, CAD) 

The comdolls returned some of their wins to the yen but held their ground versus the dollar. The Loonie lagged for another day, however, as crude oil looked ready to resume its drop. New Zealand's quarterly inflation expectations rose from 2.0% to 2.1%. 

By Kate Curtis from Trader's Way