Sterling surges as BoE temper rate cut........>

FOREX: Sterling surges as BoE temper rate cut calls

- GBP was top of the pile Thursday, rising against all others in G10 as the Bank

of England leant against the increasing market expectation of imminent rate cuts

from the MPC. The Bank voted 7-2 to keep policy unchanged, which helped support

GBP/USD all the way up to $1.3110, with Carney (in his final inflation report

press conference) highlighting that recent survey/sentiment data has improved.

GBP's 50 pip rally in the second leading up to the decision, however, ended up

raising more eyebrows than the presser itself.

- JPY wasn't far behind, with risk appetite taking a knock into the close as the

US CDC confirmed the first case of person-to-person spread of Coronavirus within

US borders. This prompted USD/JPY to press back below the 100-dma to target

108.45 as the first downside target. Equities fell in tandem, keeping the week's

lows well within range.

- China's January PMI numbers are due Friday, as well as Canadian, French &

Italian GDP and MNI Chicago PMI. Central bank speakers include ECB's Schnabel,

Mersch and Panetta.