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Corrective Cycle Still In Play


Approaching Recent Highs

FOREX: Flattering data buoys GBP, EUR
- A decent read on the UK labour market helped buoy GBP, with jobs numbers
showing the biggest jump in employment in over a year. This eased GBP's rise
through overnight highs to hit the best levels of the week just under $1.3050.
Nonetheless, no real rally has picked up as markets trade cautiously ahead of
Friday's critical PMIs.
- JPY trades well, having gained some regional support in Asia-Pac as markets
cautiously watched the news of the Coronavirus outbreak in China. Latest state
media reports suggest the virus has spread from Wuhan and into more Chinese
provinces, as well as Taiwan. USD/JPY shed around 25 pips at the open and sits
either side of Y110.00. EUR got some decent support on better-than-forecast ZEW,
which showed that the outlook for Germany has improved and the lasting impact of
Trump's trade disputes could be more muted than expected.
- US President Trump speaks from the World Economic Forum in Davos imminently,
but there's little data to elicit much interest elsewhere. Canadian
manufacturing sales numbers cross at 1330GMT/0830ET.
MNI London Bureau | +44 203-865-3809 |