FX Breakout Monitor: USD breaking higher in slow motion
The big EURUSD pair finally broke to the new local lows yesterday in the wake of the dovish ECB meeting, but faces a bit level almost immediately to the downside and a test next week in the form of the next FOMC meeting on Wednesday. Elsewhere, the attempt to take sterling to new highs in the wake of firm UK PMIs today was rebuffed.
FX Update: ECB wrap, sterling eyes flash PMIs
The ECB meeting was seen as mostly a disappointment as it generated little excitement on the outcome of the policy review now under way. Lagarde largely refused to answer the interesting questions. In world news, coronavirus headlines remain a concern, but most markets are oddly immune to this issue at the moment. Elsewhere, sterling is on the move after flash January PMIs.
FX Update: Corona virus concerns return, taking JPY higher
Asian markets were shaken and the CNY traded lower as Chinese authorities moved aggressively to get ahead of the corona virus outbreak. The market action saw the usual weak transmission into FX, where the JPY saw the most pickup in volatility, if still rather modest. Elsewhere, CAD was sharply lower after a more dovish than expected turn from the Bank of Canada.