Forex Major Currencies Outlook (Jan 23, 2017)

After all, Trump did say that he plans on renegotiating NAFTA with Canada and Mexico. There are no major reports from the US economy today. 

EUR

The euro recovered against most of its rivals on Friday even though there were no major reports out of the region. Today has the euro zone consumer confidence index on tap and no change from the previous -5 figure is eyed. ECB head Draghi has a testimony lined up and he might reiterate how the pickup in energy-based inflation might not be enough to prompt a discussion on tightening. 

GBP

The pound also rebounded against its peers even though UK retail sales printed a dismal 1.9% slide versus the projected 0.1% dip. The sharp rise in price levels is likely taking its toll on consumer behavior, as this may have led households to trim purchases even during the holiday season. There are no reports due from the UK today. 

CHF

The franc took advantage of dollar weakness but was stuck in consolidation against its European counterparts. There were no reports out of the Swiss economy on Friday and none are due today so the currency could take its cue from market sentiment and country-specific data. 

JPY

The yen got back on its feet on Friday, due mostly to the selloff in the dollar and the rise in risk aversion. There were no reports out of the Japanese economy then while today has the all industries activity index due.

Commodity Currencies (AUD, NZD, CAD)

The Aussie and Kiwi were able to advance to the dollar but the Loonie lagged as the BOC's dovish tone continued to dampen the currency's gains.To top it off, data from Canada turned out weaker than expected as headline CPI and retail sales came up short. Canada's wholesale sales report is due today and a 0.3% uptick is expected.

Dampened the Loonie's gains. Canadian CPI and retail sales figures are due today. 

By Kate Curtis from  Trader's Way