Stronger PMIs not enough to save Sterling -...>

FOREX: Stronger PMIs not enough to save Sterling

- The much-hyped PMI release morning managed to beat market consensus across

both manufacturing and services sectors, resulting in the best composite PMI

read for over a year. Nonetheless, particularly strong survey-based soft data

headed into the release had the street looking for readings as high as 55.0. As

such, the post-data GBP rally fizzled out quickly, with markets still judging

there's a very decent chance of a BoE rate cut next week. This keeps GBP/USD

resistance at the day's highs of $1.3173.

- Following the postponement of a decision yesterday by the WHO on coronavirus,

markets are still trading cautiously as news spreads of further cases being

picked up beyond China's borders. Total diagnoses are nearing 1,000 with further

cities, towns and public spaces being shuttered across China to stem the spread.

This has helped keep a bidtone under the greenback and JPY so far Friday.

- Still to come, US prelim January PMI data takes focus as well as Canadian

retail sales. ECB's Lagarde, BoJ's Kuroda, US' Mnuchin and a few other notable

names speak in Davos.