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Single Currency Lags - IFO, Italy to Blame

FOREX

Risk appetite took a considerable hit shortly after the Wall Street opening bell, with US futures shedding around 60 points inside 15 minutes. The sell-off translated to some support for JPY in currency markets, with the USD also faring well. Growth proxy currencies, however, saw no material downside, with the NZD actually the best performer across G10.

A softer-than-expected IFO release and continued wrangling in Italian politics led the single currency lower from the off. EUR/USD was sold to lows of 1.2116 before the pair bounced, trimming the day's losses to around 30 pips by the London close.

Focus Tuesday turns to UK jobs data for December and US consumer confidence numbers for January. Speeches are due from ECB's Centeno and de Cos. US earnings season continues with Johnson & Johnson, Microsoft and Verizon Communications all due to report.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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