10 Feb 2014
European outlook: Further industrial production weakness
FXStreet (London) - The Nikkei continued to claw back losses overnight, gaining 1.77 percent. USD/JPY saw some choppy trading, between JPY102.3280 and JPU102.45. The yen climbed to its mid-session high before consumer confidence, but then slid on a second monthly decline. The index fell 0.8 points to a seasonally-adjusted 40.5 in January, following a 1.3-point fall to 41.3 in December. The Japanese consumer confidence index now stands at its lowest level since December 2012.
AUD and NZD both traded sideways with little to drive direction.
The Chinese Quarterly Monetary Policy Report was released on Saturday, with the People’s Bank of China stating that it would continue to pursue a stable monetary policy while containing risks in lending. The PBOC added that it would step up oversight of lending in risky areas such as property and industries struggling with overcapacity.
Today’s industrial production data has already shown further weakness from France, with a decline of 0.3 percent against expectations of a flat print. Italian industrial production due at 9:00 GMT faces a similar downside risk to consensus expectations of a flat print.
A light day of North American data sees Canadian housing data as perhaps the only release of note. Housing starts are expected to see a sharp decline, with risks to the 185k consensus. The slowdown has been partly driven by the below-normal weather conditions, but also b a broad slowdown in the Canadian economy.
AUD and NZD both traded sideways with little to drive direction.
The Chinese Quarterly Monetary Policy Report was released on Saturday, with the People’s Bank of China stating that it would continue to pursue a stable monetary policy while containing risks in lending. The PBOC added that it would step up oversight of lending in risky areas such as property and industries struggling with overcapacity.
Today’s industrial production data has already shown further weakness from France, with a decline of 0.3 percent against expectations of a flat print. Italian industrial production due at 9:00 GMT faces a similar downside risk to consensus expectations of a flat print.
A light day of North American data sees Canadian housing data as perhaps the only release of note. Housing starts are expected to see a sharp decline, with risks to the 185k consensus. The slowdown has been partly driven by the below-normal weather conditions, but also b a broad slowdown in the Canadian economy.