The dollar is mixed again today as it gained against its Canadian counterpart and the Swiss franc which suffered from a weak ZEW survey and the yen as stocks came out of the gate strong. Meanwhile it lost ground to the Euro and Sterling as industrial production in Europe beat expectations and the UK employment picture beat expectations which helped fuel buying during the trade balance release at 8:30. The Pound briefly tested resistance with the Fibonacci coming in at $2.0582 limiting the upside. Plenty of orders and/or profit taking at that level brought GBP/USD right back down again and it now looks like the dollar is taking charge of the situation again. Meanwhile the Dow just cracked 13,400 on its way back down giving back its morning gains. Meanwhile GBP/CHF shot up today and currently rests on the Fibonacci support of 2.3209. Actually it just cracked it and looks like a short to me especially with it failing 2.3350 earlier. Looking forward also we have Kiwi retail sales coming out this afternoon and this should provide some decent volatility, I expect the tone to be dollar positive for the rest of the session especially with the RICS house price balance survey coming out at 7 pm. There sure is a lot of important data coming out tonight and tomorrow with Aussie employment coming out at 7:30 and Japanese capacity utilization and then industrial production at 11:30 pm. Then tomorrow we have a huge Swiss National Bank rate decision at 7 AM which could explain partially the Franc weakening today. CBI Industrial Trends is also significant at 6 am. Then we have PPI and Retail sales at 8:30 am from the US which should set the tone for the rest of the day with Business inventories at 10 am as well. A high PPI will probably offset a weak retail sales figure which will give a dollar neutral or even dollar positive bias to the session. So long story short I am still expecting a good day for the dollar but also a good day for the Franc, but better against Sterling than the greenback.
