FX Update: The dollar has traded mixed amid a variety of cross-currents
FX Update: The dollar has traded mixed amid a variety of cross-currents. One theme was euro outperformance, which saw EUR-USD match, although not surpass, last Friday's three-week high at 1.1323, while EUR-JPY printed a six-week high at 126.80 and EUR-GBP a four-week peak, at 0.8681. EUR-CHF has also continued a recovery from the eight-month low seen in late March at 1.1162, today trading above 1.1400 for the first time since February. There didn't appear to have been a specific news or data catalyst behind the common currency's outperformance. There have been some suspicions of SNB intervention in EUR-CHF (which has risen on every trading day bar one since March 29), while ECB board member Hansson said there is little to doubt that growth will pick up in the second half of 2019. Data showed the Eurozone trade surplus widening, while March Eurozone HICP inflation was confirmed at 1.4% y/y, in line with the preliminary number. Elsewhere, the risk-on vibe in global stock markets was boosted by a strong set of data out of China today, which gave buoyancy to the Australian and Canadian dollars. AUD-USD posted a two-month high at 0.7205, while USD-CAD saw a two-day low at 1.3308. The biggest mover today has been AUD-NZD, which is up nearly 1%. This followed a sub-forecast CPI data out of New Zealand, which sent NZD-USD to a three-month low at 0.6667. Elsewhere, USD-JPY has remained near the 112.0 level, consolidating the near 1 big figure rally that was seen last Friday. Sterling traded softer following sub-forecast UK CPI data. The U.S calendar today brings February trade report, tough of more importance is the March retail sales report on Thursday.