Session Recap: USD mixed, RBA in focus

FXStreet (Córdoba) - Another uneventful session in America saw majors pairs wavering within recent ranges as investors take a breather ahead of the next key event, namely the non-farm payrolls on Friday.

US data came in mostly in line with expectations, but the more important ISM manufacturing PMI showed deceleration in the sector in January (53.5 from 55.5 prev). Meanwhile, separated data showed Americans cut their spending in December and construction spending rose less than anticipated.

Despite soft data, US stocks managed to hold onto gains as oil recovery lent some support.

In the FX market, the pound and the Swissy were among the worst performers while commodity currencies accomplished some gains. Signs that the SNB has been intervening to weaken the franc, sent EUR/CHF and USD/CHF to 2-week highs.

EUR/USD managed to climb back above 1.3100 while USD/JPY recovered from lows to trade positively on the day around 117.60. GBP/USD failed to regain the 1.51 mark and was confined to a lower range over the last hours.

Now all attention turns to the Reserve Bank of Australia that will decide on monetary policy. Investors have been increasing bets the RBA will cut interest rates, while a dovish statement is taken for granted.

Main Headlines in America:


US personal income increases 0.3 percent

Canada RBC Manufacturing PMI declined to 51 in January from previous 53.9

US Jobs report preview – Danske

RBA coming up; What will the out come be? - ING

US manufacturing activity slows in January

US stocks closed at highs as Varoufakis hints Greece's solution could be solved soon

US stocks closed at highs as Varoufakis hints Greece's solution could be solved soon

Strong day across Wall Street as shares traded in a cocktail of situations. Good news from Greece after the 'constructive meeting' in between UK's George Osborne and Greek Finance Minister Yanis Varoufakis; plus rally in oil prices as well as some short covering in stocks.
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RBA to drop 'period of stability' - ANZ

According to ANZ, the RBA might keep its rates unchanged at 2.50% but drop the ‘period of stability’ , thus laying the ground for potential rate cuts.
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