Pip Diddy

Last week Kiwi took cues from risk appetite for direction. Will this week’s CPI report change all that for the bulls and bears?

The Aussie was on track as the biggest gainer last week despite trading without a clear direction. Will it get the attention of bulls and bears this week?

GBP was kicked lower after the U.K.’s disappointing retail sales report was released. USD, meanwhile, staged a broad-based recovery, likely because of short-covering after U.S. government shutdown worries sent USD lower.

With no major economic report, Asian session traders focused on a possible U.S. government shutdown. Meanwhile, weaker oil prices dragged the Loonie lower.

Traders showed no love for the Greenback once more as the looming deadline of the government funding bill increases the risk of a shutdown. U.S. economic data also turned out mostly weaker than expected. 

CHF was in demand during the session, which is kinda wonky since risk appetite was the dominant sentiment. JPY’s weakness made more sense, though, given the risk-on vibes. As for USD weakness, there was no apparent reason for that.

The Greenback continued to extend its gains as traders caught up to the previous session’s trends. Meanwhile, the Aussie failed to find support from a strong jobs release.

Warnings about euro appreciation kept the shared currency in a downbeat mode for the rest of the U.S. session while a few other major currencies enjoyed a bit more volatility.

The euro had a bad run during the session, thanks to comments from ECB officials. Meanwhile, the Aussie and the Kiwi got a lift, likely because of the returning risk-on vibes during the morning London session.

GOP’s new stopgap bill eased concerns of a government shutdown in the U.S. and boosted the Greenback, while the Aussie was supported by a better-than-expected data release.