# Forex Major Currencies Outlook (May 18, 2016)

Source: https://www.tradersway.com/resources/market-info/forex-major-currencies-outlook-may-18-2016/
Language: en
Updated: 2016-05-18

**USD**



The US dollar regained ground against its forex peers as data from the US economy came in mostly stronger than expected.



Headline CPI rose 0.4% versus the 0.3% uptick expected while the core CPI posted the projected 0.2% increase. Industrial production rose 0.7%, higher than the estimated 0.3% reading, while both building approvals and housing starts gained. The FOMC minutes are up for release today and stronger hints about a June hike could spur more dollar gains.



**EUR**



The euro weakened to the dollar and yen but managed to bounce back against the comdolls and the pound. The region’s trade balance missed expectations at a surplus of 22.3 billion EUR versus the 23.1 billion EUR consensus. Euro zone final CPI readings are due today and no changes from the -0.2% headline figure and the 0.8% core figure are expected.



**GBP**



The pound managed to stay resilient despite weaker than expected UK CPI readings. The headline figure fell from 0.5% to 0.3% instead of holding steady while the core figure dropped from 1.5% to 1.2%. For today, the UK jobs report is due and a 4K increase in claimants is eyed. The jobless rate is expected to hold steady at 5.1% while the average earnings index could slide from 1.8% to 1.7%.



**CHF**



The franc was still in a weak spot even with stronger than expected data from Switzerland. Producer prices rose 0.3% versus the projected 0.1% uptick, also showing an improvement from the earlier flat reading. There are no reports due from the Swiss economy today.



**JPY**



The yen was able to rake in gains against its forex counterparts after the Japanese industrial production figure showed an upward revision from 3.6% to 3.8%. Earlier today, the Japanese GDP reading posted a stronger than expected 0.4% expansion versus the estimated 0.1% growth figure. Core machinery orders are lined up next.



**Commodity Currencies (AUD, NZD, CAD)**



The comdolls retreated from their recent rallies despite an API report indicating a draw of 1.1 million barrels from stockpiles. Data from Canada was weaker than expected, as manufacturing sales dipped 0.9%. In New Zealand, the GDT auction showed a 2.6% rebound in dairy prices but PPI readings missed expectations. PPI input fell 1.0% instead of gaining 0.3% while PPI output fell 0.2% instead of rising by 0.4%. In Australia, the quarterly wage price index rose 0.4%, short of the estimated 0.5% increase.



*By Kate Curtis from Trader’s Way*