There just ain’t any good news anywhere. This makes investors risk averse and prompts deeper slides in EUR/JPY and supports the dollar generally. Export-dependent Japanese companies like Sony and Toyota are retrenching as quickly as their US and European competitors. Eurozone manufacturing and service-sector indexes contracted again in January, though not as deeply as expected.
UK GDP dropped more than expected, though retail sales was a bright spot. Looks like our British cousins are engaging in a little retail therapy to brighten the economic gloom. Didn’t help the pound much as we trade on the 1.35 handle.
The US calendar is empty so the focus will be on stocks and stocks are in the tank. Risk remains at a low ebb, and so should EUR/JPY, the pound and commodity currencies.
