Entering into US session, Sterling is generally firm in tight range today, consolidating this week’s rally. UK and EU are working on an updated Brexit agreement, most likely with some legally firmer assurances outside of the main agreement. There is prospect of having another vote next week on February 27. Euro follows as the second strongest as PMI composite improved. But it should be noted that manufacturing did deteriorate while that’s offset by domestic strength in services only. ECB accounts provided nothing special.
On the other hand, Aussie is leading the way down, followed by Kiwi. Australian Dollar was firstly pressured as Westpac forecast two RBA cuts this year. Then, it suffered further selloff news that China’s Dalian port has banned imports of Australian coal. China’s foreign ministry spokesman Geng Shuang said the goals of the ban were to “better safeguard the legal rights and interests of Chinese importers and to protect the environment”.
A bunch of US data will be released today including Philly Fed survey, jobless claims, durable goods, PMIs, leading index and existing home sales. Traders will also want to know more about the multiple MOUs the US and China trade negotiation teams are working on.
In Europe, currently:
- FTSE is down -0.96%.
- DAX is up 0.12%.
- CAC is down -0.07%.
- German 10-year yield is up 0.0376 at 0.138.
Earlier in Asia:
- Nikkei rose 0.15%.
- Hong Kong HSI rose 0.41%.
- China Shanghai SSE dropped -0.34%.
- Singapore Strait Times dropped -0.01%.
- Japan 10-year JGB yield dropped -0.003 to -0.039.
