Headlines:
- China January M2 money supply +9.8% vs +9.2% y/y expected
- ECB says will not extend capital and leverage relief for banks
- ECB's de Guindos: Inflation is going to start declining this spring
- ECB's de Guindos: We need to maintain flexibility, optionality on monetary policy
- BOJ to offer on 14 February to buy unlimited amount of 10-year JGBs
- BOJ's Kuroda: No chance to debate exiting easy policy during my remaining term in office
- BOJ's Kuroda says that chances of a large jump in inflation are low
Markets:
- GBP leads, JPY lags on the day
- European equities a touch higher; S&P 500 futures down 0.1%
- US 10-year yields flat at 1.927%
- Gold down 0.1% to $1,831.40
- WTI up 0.8% to $90.36
- Bitcoin up 0.5% to $44,720
It was a quiet and tentative session for the most part as market participants are all awaiting the US consumer inflation report later today.
Equities were in pensive mood, not showing much conviction whatsoever with Treasury yields also mostly flattish. That isn't offering much for currency traders to work with in European morning trade.
The dollar is more mixed with the yen marked slightly lower as the BOJ takes a bit of a dovish step in trying to rein in the recent surge in JGB yields. USD/JPY is up 0.2% to 115.70-80 while other dollar pairs are showing little poise in general.
Cable did nudge higher from 1.3535 to 1.3579 but gains are still rather limited closer to 1.3600.
Elsewhere, oil is showing a decent bounce but upside is capped by its 100-hour moving average around $90.60 at the moment.
It's all on the US consumer inflation report next to set the tone for the remainder of the week.
