Dollar remains some ground in early US session after a mixed bag of economic data. Headline CPI in Dec stayed positive at 0.1% yoy, above expectation of -0.2% but core CPI slowed deeper than expected from 2.0% yoy to 1.8%. TIC capital flow recorded -21.7B contraction. Industrial production dropped more than expected by -2.0% mom in Dec with capacity utilization dropped to 73.6. However, U of Michigan consumer sentiments improved from 60.1 to 59.0. After all, risk aversion is still the main theme in the forex markets. with DOW still in recovery, dollar and yen will likely remains soft. However, note that the current recovery might be limited by prior support at 8367. DOW's choppy rise from 7450 should have completed and recent down trend is likely resuming, which should then trigger another round of dollar and yen buying.
Released earlier, Swiss PPI dropped 0.7% mom (consensus:-0.6%; November: -1.4%) in December as driven by decline in oil price. On annual basis, input price rose 0.4%, lower than market expectation of +0.6% and +1.1% in November. The Eurozone recorded a deficit of 4.9B euro in November after a surplus of 0.9B euro in the previous month.