Headlines:
- Will the ECB shake things up later today?
- What to watch out for going into the BOE decision later today?
- Pound rally stalls ahead of the BOE
- German 2-year yields near six-year highs ahead of the ECB later
- UK January final services PMI 54.1 vs 53.3 prelim
- Eurozone January final services PMI 51.1 vs 51.2 prelim
- A couple of takeaways from the PMI readings in Europe today
- Japan reportedly considering two-week extension of COVID-19 curbs
- BOJ's Wakatabe: No plan to modify existing monetary policy
Markets:
- NZD leads, CHF lags on the day
- European equities lower; S&P 500 futures down 1.2%
- US 10-year yield up 1.1 bps to 1.777%
- Gold down 0.1% to $1,804.51
- WTI down 1.5% to $86.93
- Bitcoin down 0.4% to $36,730
The session took a cue from the happenings in US yesterday, after Facebook/Meta shares plunged amid a disappointing earnings report and outlook. That sank tech stocks and Nasdaq futures, with the more negative mood reverberating to Europe as well.
As such, softer risk tones kept the dollar slightly on the firmer front as it pushed higher on the session.
EUR/USD fell from 1.1295 to 1.1275 while GBP/USD eased from 1.3570 to 1.3540 as the dollar pushed a little higher. USD/JPY also climbed from 114.50 to 114.85 as bond yields also steadied on the day.
Commodity currencies were more mixed with USD/CAD moving up to 1.2700-10 again as oil prices struggled. WTI is seen down 1.5% to just below $87 at the moment. Meanwhile, AUD/USD is down 0.3% to 0.7111 while NZD/USD is flattish around 0.6630.
All eyes are on the BOE and ECB meetings next as the market looks to scour for more clues on what to do next before the focus turns towards the US non-farm payrolls tomorrow.
