Forex Major Currencies Outlook (April 9, 2014)

USD/JPY tumbled to the 101.50 minor psychological support and bottom of the rising channel, indicating a possible bounce. There have been no major reports released from the US yesterday, with only the stronger than expected JOLTS job openings figure reported. However, this wasn’t enough to support the Greenback as traders closed most of their dollar longs ahead of the release of the FOMC meeting minutes today. Downbeat remarks from policymakers could push the dollar lower to its counterparts.

EUR

The euro made a decent rebound to the dollar in recent trading but edged lower to the Japanese yen. Only medium-tier data such as the French trade balance were released from the euro zone, as the bounce was mostly a result of a pick-up in risk appetite. German trade balance is up for release today and it isn’t expected to make a huge impact on euro movement.

GBP

The pound resumed its climb to the dollar in recent trading when the UK economy reported a stronger than expected manufacturing production figure. The report showed a 1.0% increase versus the estimated 0.3% uptick but the previous month’s figure was revised lower. Only the UK trade balance is up for release today and it might not derail the pound’s gains if it comes in as expected at a narrower deficit of 9.3 billion GBP.

CHF

The franc advanced to the dollar and most of its major counterparts lately when Switzerland printed a stronger than expected retail sales figure. The report showed a 1.0% gain versus the estimated 0.9% uptick but the previous figure was revised down to -0.1%. There are no major reports due from Switzerland today so dollar direction might dictate whether USD/CHF can keep dropping or not.

JPY

The yen gained against most of its major counterparts on the heels of a hawkish BOJ statement yesterday. Many were expecting to hear dovish remarks or hints of easing, but Kuroda said that the sales tax hike isn’t negatively affecting economic performance so far. He did mention that the central bank could add stimulus if necessary but he said that the economy is still on track to meet the 2% annual CPI target by the end of the year.

Commodity Currencies (AUD, NZD, CAD)

The comdolls recovered to most of its major counterparts in yesterday’s trading, with the exception of the strong yen. Australian NAB business confidence slipped from 7 to 4 while New Zealand NZIER business confidence held steady at 52. Canadian housing starts and building permits both came in weaker than expected. Data on Australian home loans and Westpac consumer sentiment are up for release today and strong figures might allow the Aussie to extend its gains. No other major reports are due from the comdoll economies.

By Kate Curtis from Trader's Way