US trade balance also improves, but USD mixed today
It is a mixed bag for the USD today, losing ground against the commodity currencies and to a small degree vs the EUR while making modest ground against GBP and the safe havens that are the JPY and CHF. All in all, the USD is in consolidation mode, with traders fighting it out over those seeking yield differentials and others trading the softer Fed line.
Looking at USD/JPY, price action has been held aloft in and around the 112.00 mark, and on the week so far, we have barely covered half a JPY!
EUR/USD continues to struggle into the resistance in the 1.1315-25 area, though we get US retail sales tomorrow, which will hopefully spark some fresh action ahead of the Easter break.
From here, it looks as though Cable and USD/CAD are the pairs to watch out for. GBP has been under pressure through the day, and there is little reason to believe this will let up, so we could see a fresh test of the support seen into the low 1.3000's.
USD/CAD has so fat tested down to 1.3275-80 in the aftermath of the Canadian inflation data, and may well challenge levels a little lower though buyers seen in good size in the mid 1.3200's.