Forex news and trading headlines 1 Feb 2017


  • Japan's Abe says it's important to share understanding with US on FX, economics and trade policies
  • Abe says he will explain to Trump that BOJ easing isn't bad for US
  • Japan's Suga says FX markets are being monitored "with vigilance"
  • Japan's Hamada: Trumps one-sided arguments are destructive to Japan, world economy
  • Saudi Arabia's Falih says he welcome US oil supply as long as it grows with global energy demand
  • US NFPs next week more important than FOMC today
  • French election poll show Macron likely to win first and second rounds of voting
  • Citi/YouGov poll has UK CPI year-ahead inflation expectations rising to 2.6%
  • India's CPI is expected to remain with RBI's target range of between 2-6%
  • More from Jaitley: Will introduce a Bill to regulate financial firms
  • Option expiries for the 10 am NY cut today 1 Feb
  • Nikkei 225 closes up +0.56% at 19,148.08


  • UK Markit/CIPS January mftg PMI 55.9 vs 55.9 expected
  • UK Nationwide January HPI mm +0.2% vs 0.0% expected
  • Eurozone Markit January mftg PMI final 55.2 vs 55.1 exp
  • Germany Markit/BME January mftg PMI final 56.4 vs 56.5 exp
  • France Markit January mftg PMI final 53.6 vs 53.4 expected
  • Italy Markit/ADACI January mftg PMI 53.0 vs 53.3 exp
  • Spain Markit January mftg PMI 55.6 vs 55.0 expected
  • Switzerland Jan mftg PMI 54.6 vs 55.9 expected
  • Australia January commodity index SDR yy 55.7% vs 44.8% prev

A data-heavy session but we've not had a lot of reaction with focus firmly on the FOMC but in generally USD-heavy trading we've seen the pound make decent gains.

USDJPY had enjoyed a steady rally in Asia but ran out of puff early on in Europe with plenty of Japanese jaw-boning hogging the headlines. Highs of 113.62 were followed by a slow retreat to 113.25 but yen selling notable with GBPJPY leading the way again to 143.25.

That demand has pushed cable up through 1.2600, a level it had failed to initially sustain around better UK mftg PMI, and we're testing 1.2650 now as I type. EURGBP has offered little by way of a hurdle and has fallen through 0.8550 to 0.8535 with EURUSD struggling to break above 1.0800 even though EURJPY has been underpinned in a rally to 122.52

USDCHF has been steady around 0.9990 despite $ weakness elsewhere. No confirmation of the SNB in the market but someone certainly appears to have buy interest between 0.9860-80 with EURCHF holding 1.0650.

AUDUSD has chewed its way up to test 0.7600 but failed to break through while USDCAD has taken a turn lower again through 1.3080 to post 1.3045 as oil firms and US$ weakens. European equities opened on the front foot and have remained steady since.

US ADP data the next cab off the rank at 13.15 GMT but it's the FOMC at 19.00 GMT that will take centre stage. That and the on-going political rhetoric of course.