G10 currencies remain steady as investors focus on today's European Inflation and US jobs data. UK services PMI fell short of the previous months figure, printing at 53.6.
January 7, 2022
GBP/USD 1.3548 GBP/EUR 1.1975 EUR/USD 1.1313 USD/CAD 1.2724 EUR/CHF 1.0415 EUR/SEK 10.3161 EUR/NOK 10.0352 EUR/DKK 7.4377 USD/ILS 3.1078 AUD/USD 0.7149 NZD/USD 0.6748 USD/SGD 1.3592 USD/JPY 115.80 USD/CNH 6.3808 USD/INR 74.33 EUR/ILS 3.5157 GBP/ILS 4.2077 USD/ZAR 15.6651
Sterling remains steady this morning after gaining against the Euro and Dollar during yesterday’s European session. Gains were limited as Services PMI fell short of the previous month’s figures, printing at 53.6, slightly above expectations.
Despite the soft data, falling Covid daily cases and positive Brexit sentiment seemingly buoyed the pound. The UK reported 180,000 cases the previous day, down from figures over 200,000 earlier this week. Elsewhere, reports that the UK’s Head of Competition and Markets Authority is stepping down boosted hopes of softer Brexit negotiations, as insiders had described him previously as a “hurdle”.EUR
EURUSD has stabilised just above the 1.1300 level as investors eye key data releases today from both sides of the pond. German inflation slowed yesterday from the highest level in decades, in line with the ECBs view that rising consumer prices will ease without the need for raising interest rates. The same reading for the Euro Area is due for today, with expectations set to show a slight decline to 4.8%.
Emmanuel Macron leads Marine Le Pen 25% to 17% in the latest poll of first-round voting intentions ahead of the presidential election in April. Macron has strengthened his lead against his main challengers over the last month, despite facing criticism following his “coarse” attack on anti-vaxxers.USD
Comments from Fed member James Bullard last night, supported Wednesday’s meeting minutes. Citing that the central bank could raise interest rates as soon as March, and pull forward subsequent rate increases throughout the year, in response to surging inflation.
Despite the comments, the US Dollar is little changed ahead of today’s jobs report, where non-farm payrolls data is expected to show that the economy added 447k jobs in December, more than double that of the previous month. The DXY remains range bound trading either side of the 96.2 level.ASIA/PACIFIC
Japan’s finance minister has stressed the need for currency stability as the Dollar traded near five-year highs against the Yen this week. Bank of Japan policymakers have stressed broader concerns if the USDJPY pair hits the 120.00 level.
The Chinese Yuan is set for its biggest weekly decline against the Dollar in four months, amid focus on continuous policy divergence across central banks. USDCNY is up 0.3% this week.ILS
The shekel is little changed on the Dollar following Wednesday’s Federal Reserve minutes. The pair is trading just below the 3.1100 level at time of writing.Data & Events
UK – Construction PMI
Euro Area – Inflation Rate
US – Non-farm Payrolls
Fed members speak
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