Forex Major Currencies Outlook (Jun 08, 2017)

It hinted that the former FBI head won't be divulging evidence of wrongdoing on Trump's part when it comes to sharing intelligence information on Russian officials. US consumer credit fell sharply to $8.9 billion to indicate a possible slowdown in spending for April. 

EUR

The euro tanked when rumors about the ECB cutting its inflation outlook hit the newswires. This follows the downbeat flash CPI readings released late last week. German factory orders also printed a weaker than expected 2.1% slump instead of the projected 0.2% dip. No actual policy changes are expected from the ECB today but traders are likely to hunt for policy clues from Draghi's testimony and press conference. 

GBP

The pound was able to recover slightly on more polls hinting that the Conservatives could maintain their lead in the elections. Halifax HPI also came in stronger than expected with a 0.4% gain versus the projected 0.2% drop. The UK parliamentary elections is coming up next and a majority for the Tories could restore political stability in the country. 

CHF

The franc gave up some ground to most of its peers as risk appetite returned to the markets. The SNB foreign currency reserves reading dipped from 697B CHF to 694B CHF to show no evidence of intervention just yet. Swiss jobless rate is due next and no change from the 3.3% reading is eyed. 

JPY 

The yen was one of the weakest performers for the day as it gave up ground on risk appetite. Japan's leading indicators came in slightly better than expected at 104.5% versus the projected 104.4% reading, down from the earlier 105.5% figure. The final GDP reading is due next and a small upgrade from 0.5% to 0.6% is expected. 

Commodity Currencies (AUD, NZD, CAD)

The Aussie got a strong boost from a better than expected 0.3% GDP reading versus the projected 0.2% expansion. The Loonie was also lagging behind due to a surprise fall in Canada's building permits and a buildup in US crude oil stockpiles of 3.3 million barrels. The Australian trade balance is due next and a smaller surplus of 1.91 billion AUD is expected. China is also set to print its trade balance and might report a wider surplus of 336 billion CNY.

By Kate Curtis from Trader’s Way