FX News Today
- Stock markets traded mixed in Asia – NASDAQ is outperforming, Nikkei lost -0.52% and UK100 futures are moving higher.
- No more bad news from Apple: Apple Inc.’s report of sharp growth in its services business helped to underpin sentiment,.
- Brexit: UK lawmakers didn’t vote to extend the Brexit deadline. PM May heads back to Brussels to re-negotiate backstop.
- EU leaders were once again quick to stress that the legal text of the withdrawal agreement is not up for discussion.
- French GDP numbers held up better than expected and German GfK consumer confidence unexpectedly jumped higher.
- EURUSD ebbed back to net unchanged (1.1430) after posting 2-week high at 1.1451.
- USDJPY stucks in the mid-to-low 109.0s.
- GBPUSD is trading near 1.3100 from 1.3190 high.
- The front end WTI future is trading at USD 53.42 per barrel.
Charts of the Day
Main Macro Events Today
- German Jan HICP – Expectations -While the German HICP rates are above the Eurozone average now, base effects from lower energy prices continue to keep the headline rate below the ECB’s 2% limit. The preliminary January reading should be at 1.8% y/y .
- ADP Employment – Expectations –The January ADP Employment report should reveal a 195k gain for the month, after a 271k December gain.
- FOMC – Expectations – The FOMC statement will be released at 19:00 GMT. That will be followed by Chairman Powell’s press conference, which will now be a regular affair at each meeting, although forecasts will continue to be published quarterly. No one expects any action on rates tomorrow (including IOER). We expect the statement to include the new watchword “patient,” along with “flexible,” with the latter perhaps a nod to the balance sheet, and stress on data dependency.
Support and Resistance
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Andria Pichidi
Market Analyst
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