Forex Major Currencies Outlook (Sept 22, 2014)

For today, only the existing home sales report is up for release and it might show a climb from 5.15M to 5.21M, which might allow the dollar to extend its gains. Also for today, FOMC member Dudley is set to give a testimony and his monetary policy bias could also affect dollar movement.

EUR

The euro dropped to the dollar once more, as the weak demand for the ECB’s targeted long-term refinancing operations weighed on the shared currency. German PPI came in line with expectations of a 0.1% decline while the euro zone current account balance showed a better than expected result. The German central bank monthly report is due today, along with a speech by ECB Governor Draghi. Dovish remarks could lead to more losses for the euro.

GBP

The pound gave up some ground on Friday, as traders booked profits off their long positions after the Scottish referendum. There have been no reports released from the UK then and there are none due today, which might keep pound pairs in consolidation for the time being. 

CHF

The franc resumed its decline in recent trading, although it did manage to hold on to its recent levels to the euro. There have been no reports released from Switzerland then and none are due today, which could leave the franc sensitive to risk sentiment.

JPY

The yen made a bit of a recovery on Friday, thanks to profit-taking. The all industries activity index showed a 0.2% decline instead of the projected 0.4% uptick, confirming speculations that the Japanese economy still hasn’t recovered. There are no reports lined up from Japan today, leaving the yen at the mercy of market sentiment.

Commodity Currencies (AUD, NZD, CAD)

The Aussie and Kiwi resumed their weak bout to the dollar on Friday, with the Loonie managing to advance on the heels of better than expected Canadian CPI. The core version of the report showed a 0.5% gain while the headline figure stayed flat instead of posting the projected 0.1% decline. This was enough for traders to ignore the weaker than expected Canadian wholesale sales report. For today, there are no reports due from the comdoll economies.

By Kate Curtis from Trader's Way