ForexLive European FX news wrap: Pound fails to take heart in UK PMI data beat

Author: Justin Low | Category: News

Forex news from the European morning session - 24 January 2020



  • NZD leads, GBP lags on the day
  • European equities higher; E-minis up 0.2%
  • US 10-year yields up 1 bps to 1.742%
  • Gold down 0.2% to $1,559.50
  • WTI down 0.4% to $55.37
  • Bitcoin down 0.3% to $8,358

EOD 24-01
It was a pretty mixed session overall with some decent movement in the currencies space amid January flash PMI data releases from Europe.

The euro area releases fail to show any signs of significant improvement with the services and composite readings proving to be a drag, although German economic activity did see some improvement at the start of the year.

That failed to breath life into the euro though with EUR/USD inching higher to 1.1062 before being slowly brought lower to 1.1045. The pair is then now brought to session lows as the dollar stays more firm amid a reversal in bonds in the European morning.

Risk was sitting on more steady footing with European equities posting solid gains and US futures up by around 0.2%. US 10-year yields also climbed as much as 3 bps to 1.76% before reversing to settle around flat levels, driving bids in the dollar and yen.

Meanwhile, the pound was the biggest mover in the currencies space after UK PMI data saw a marked improvement after the election. That saw cable whipsaw as price moved up to 1.3173 before reversing quickly to 1.3125.

As the dust settles, the data only served to push odds of a BOE rate cut next week to as good as a coin flip, with pound traders unable to take heart in a 50-50 risk event to push the currency higher on the day.

Cable then fell below the 1.3100 handle and is keeping near the lows around 1.3180-95 as we look towards the start of North American trading.

Looking ahead, keep an eye on the risk mood as the situation surround the new coronavirus outbreak continues to draw headlines around the globe ahead of the weekend.

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