It was a relatively quiet trading day for the currencies on Friday with most of the majors trading in a range bound fashion. The equity markets had a good day with most of the indices finishing up nicely in the black. This did not translate through to downside in the dollar as it has been in recent weeks and the Dxy held steady just south of 90.00 for most of the sessions.
We did get a decent move in the Cad later in the day as the CPI data came out stronger than expected leading to Cad appreciation across the board (UsdCad down to 1.2621 from 1.2700) and increased expectation of further hikes from the Bank of Canada. Oil moving back above $63 a barrel also supported this move in the currency.
Looking ahead to today’s trading and we look to have a bit more of the same with very little in the way of fundamental economic releases due, although we have seen a good topside move in the UsdJpy already this morning. There is nothing due in the Asian session and only second and third tier releases due in the London and New York sessions but the main focus for the day will be on the Euro and ECB President Draghi’s testimony to European Parliaments Economic and Monetary Affairs Committee which is due at 1.00 am Sydney time.