Forex Major Currencies Outlook (Aug 27, 2014)

Data from the US economy was mostly stronger than expected, with only the core durable goods orders figure coming in short of expectations at a 0.8% decline instead of the estimated 0.5% uptick. Headline durable goods orders showed a 22.6% jump versus the estimated 7.8% gain while CB consumer confidence improved from 90.3 to 92.4. The Richmond manufacturing index climbed from 7 to 12, outpacing the consensus at 8. Only crude oil inventories data is due from the US economy today.

EUR

The euro broke below its consolidation to the dollar and traded much lower, even though there were no major reports released from the euro zone. For today, German GfK consumer climate data is due and the index could fall from 9.0 to 8.9, with a weaker than expected reading likely to push the euro lower. Also due today is the German import prices report, which could mark a 0.1% decline in prices.

GBP

After recently closing its weekend gap, the pound resumed its selloff to the dollar, as BBA mortgage approvals data came in below expectations. The report showed a drop from 43.2K to 42.8K instead of the projected improvement to 44.2K, indicating that the UK housing sector is in a slowdown. There are no reports due from the UK economy today.

CHF

The franc took its cue from the euro and weakened to the dollar once more, even though there were no reports released from Switzerland. For today, the UBS consumption indicator might have a say in franc movement, with the index expected to dip from the previous 2.06 reading.

JPY

The yen managed to keep its losses contained in recent trading, except against the commodity currencies. There were no reports released from Japan then and none are due today, leaving yen pairs at the mercy of market sentiment.

Commodity Currencies (AUD, NZD, CAD)

The comdolls had a good run in recent trading, as risk sentiment made small improvements. Earlier today though, Australia’s construction work done came in below expectations at a decline of 1.2% versus the estimated 0.4% downtick. To top it off, the previous figure was downgraded to a 0.4% decline. No other reports are due from the comdoll economies today.

By Kate Curtis from Trader's Way