Forex Major Currencies Outlook (Dec 29, 2016)

Pending home sales slipped 2.5% instead of posting the projected 0.6% increase. Initial jobless claims, goods trade balance, and preliminary wholesale inventories are up for release today. 

EUR

The euro continued to advance against its peers as traders seemed to shrug off Italian banking sector concerns. There were no reports out of the region yesterday while today has only a few low-tier figures lined up, namely private loans, M3 money supply, and the Italian 10-year bond auction. 

GBP

The pound also struggled to establish a clear direction in recent trading as UK data missed expectations. BBA mortgage approvals came in at 40.7K, down from the earlier 40.8K figure and short of the estimated 41.6K reading. Nationwide HPI is up for release today and a 0.2% uptick in house prices is eyed. 

JPY

Yen pairs moved mostly sideways as Japan paused from releasing downbeat data. Recent reports have been mostly in the red, although retail sales reflected a stronger than expected 1.7% rise versus the 0.9% consensus. There are no reports due from Japan today so market sentiment could be in play. 

Commodity Currencies (AUD, NZD, CAD)

The comdolls continued to reel from risk aversion as there were no upbeat reports to save the day. US crude oil inventories data is due today and a draw of 1.3 million barrels is eyed, easing fears of an oversupply and boosting prices. Australia is set to print its private sector credit data next. 

By Kate Curtis from  Trader's Way