ForexLive European morning FX news wrap: Pound steals the limelight as markets wait on FOMC

Forex news and trading headlines 1 Feb 2017

News:

•  Japan"s Abe says it"s important to share understanding with US on FX, economics and trade policies


• Abe says he will explain to Trump that BOJ easing isn"t bad for US


• Japan"s Suga says FX markets are being monitored "with vigilance"


• Japan"s Hamada: Trumps one-sided arguments are destructive to Japan, world economy


• Saudi Arabia"s Falih says he welcome US oil supply as long as it grows with global energy demand


• US NFPs next week more important than FOMC today


• French election poll show Macron likely to win first and second rounds of voting


• Citi/YouGov poll has UK CPI year-ahead inflation expectations rising to 2.6%


• India"s CPI is expected to remain with RBI"s target range of between 2-6%


• More from Jaitley: Will introduce a Bill to regulate financial firms


• Option expiries for the 10 am NY cut today 1 Feb


• Nikkei 225 closes up +0.56% at 19,148.08

Data:

• UK Markit/CIPS January mftg PMI 55.9 vs 55.9 expected


• UK Nationwide January HPI mm +0.2% vs 0.0% expected


• Eurozone Markit January mftg PMI final 55.2 vs 55.1 exp


• Germany Markit/BME January mftg PMI final 56.4 vs 56.5 exp


• France Markit January mftg PMI final 53.6 vs 53.4 expected


• Italy Markit/ADACI January mftg PMI 53.0 vs 53.3 exp


• Spain Markit January mftg PMI 55.6 vs 55.0 expected


• Switzerland Jan mftg PMI 54.6 vs 55.9 expected


• Australia January commodity index SDR yy 55.7% vs 44.8% prev

A data-heavy session but we"ve not had a lot of reaction with focus firmly on the FOMC but in generally USD-heavy trading we"ve seen the pound make decent gains.

USDJPY had enjoyed a steady rally in Asia but ran out of puff early on in Europe with plenty of Japanese jaw-boning hogging the headlines. Highs of 113.62 were followed by a slow retreat to 113.25 but yen selling notable with GBPJPY leading the way again to 143.25.

That demand has pushed cable up through 1.2600, a level it had failed to initially sustain around better UK mftg PMI, and we"re testing 1.2650 now as I type. EURGBP has offered little by way of a hurdle and has fallen through 0.8550 to 0.8535 with EURUSD struggling to break above 1.0800 even though EURJPY has been underpinned in a rally to 122.52

More summary to follow.

ForexLive European morning FX news wrap: Pound steals the limelight as markets wait on FOMC
ForexLive European morning FX news wrap: Pound steals the limelight as markets wait on FOMC
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