Forex Major Currencies Outlook (Dec 18, 2017)

The Empire State manufacturing index fell from 19.4 to 18.0 instead of the estimated dip to 18.8 while industrial production saw a smaller than expected gain of 0.2% versus the estimated 0.3% uptick. Only the NAHB housing market index is due today.

EUR

The euro regained a bit of ground on Friday as sellers booked profits off their post-ECB short positions. The central bank did upgrade growth forecasts after all and could maintain their hawkish stance for the next few months. Euro zone trade balance came in weaker than expected, though, and final CPI readings are due today.

GBP

The pound slumped against most of its peers towards the end of the week even though there were no reports out of the UK then. Today has the CBI industrial order expectations index and a dip from 17 to 14 is eyed to reflect slower demand. Traders could also keep close attention to Brexit updates for the rest of the day.

CHF

The franc had a mixed run as the lack of top-tier events kept risk sentiment and currency-specific factors in play for Friday. Today's economic schedule is still empty for Switzerland so franc pairs could simply take their cues from the same factors.

JPY

The yen continued to slide against its counterparts as risk-off flows went to the dollar instead. The Tankan survey printed mixed results while the trade balance released over the weekend turned out better than expected. There are no reports due from Japan today so sentiment and currency-specific factors could stay in control.

Commodity Currencies (AUD, NZD, CAD)

The comdolls managed to hold on to most of their gains against their rivals as risk sentiment improved. There were no reports out of Australia, New Zealand, and Canada then and there are no major ones lined up today. The Aussie is currently supported by a less dovish RBA stance and rising gold prices while the Kiwi got a boost from the RBNZ head announcement.

By Kate Curtis from Trader's Way