Last week’s risk-off tone filtered through to the start of the new trading week while caution is also keeping markets subdued ahead of a risk-filled week.
The Bank of England and European Central Bank both hold policy meetings on Thursday. Meanwhile, the Reserve Bank of Australia is also having a policy meeting on Tuesday. One of the most important events this week will be Friday’s US nonfarm payrolls, which could cause much volatility in the markets.
Chinese markets were still enjoying the Lunar Year Holiday today, keeping volumes thin during the Asian session. However China PMI data released over the weekend and on Monday kept market sentiment damp. Following from last week’s weak HSBC PMI releases, the official data showed that China’s factories are struggling for growth, raising fears of an economic slowdown in the world’s second largest economy. Non-manufacturing PMI data also indicated a slowdown, as the figures for January reached 5-year lows.
Despite risk-aversion, the dollar/yen pair bounced higher in the Asian session, although still hovering near Friday’s lows after coming under pressure on weak US data last week.
The dollar ended the Asian session with a 0.09% gain against the yen at 102.08, versus Friday’s close of 102.04.
The euro started the week by consolidating losses against the dollar after dropping sharply last week following weak Eurozone inflation data. Risks of deflation in the region are raising concerns that the ECB will be more dovish at this policy meeting and may begin easing.
The euro traded a tight range in Asia between 1.3479 and 1.3496. In the upcoming European session, Eurozone final manufacturing PMI data will be released, which will be a risk event for the euro.
Sterling extended lower in Asia, falling early in the session to 1.6419 and traded sideways before ending at 1.6428 with a 0.04% gain. UK manufacturing PMI data due in the European session will be closely watched.
The aussie came under pressure after negative Australian data releases. The aussie fell 0.06% in the session to end at 0.8748. The China official manufacturing and services PMI data are also negative for the Australian currency since China is a major trading partner for Australia.
Apart from the European data releases, investors are also focusing on US ISM manufacturing survey, hoping to see more robust data following a series of disappointing data last week, which put the dollar under pressure.
Last week’s risk-off tone filtered through to the start of the new trading week while caution is also keeping markets subdued ahead of a risk-filled week.
The Bank of England and European Central Bank both hold policy meetings on Thursday. Meanwhile, the Reserve Bank of Australia is also having a policy meeting on Tuesday. One of the most important events this week will be Friday’s US nonfarm payrolls, which could cause much volatility in the markets.
Chinese markets were still enjoying the Lunar Year Holiday today, keeping volumes thin during the Asian session. However China PMI data released over the weekend and on Monday kept market sentiment damp. Following from last week’s weak HSBC PMI releases, the official data showed that China’s factories are struggling for growth, raising fears of an economic slowdown in the world’s second largest economy. Non-manufacturing PMI data also indicated a slowdown, as the figures for January reached 5-year lows.
Despite risk-aversion, the dollar/yen pair bounced higher in the Asian session, although still hovering near Friday’s lows after coming under pressure on weak US data last week.
The dollar ended the Asian session with a 0.09% gain against the yen at 102.08, versus Friday’s close of 102.04.
The euro started the week by consolidating losses against the dollar after dropping sharply last week following weak Eurozone inflation data. Risks of deflation in the region are raising concerns that the ECB will be more dovish at this policy meeting and may begin easing.
The euro traded a tight range in Asia between 1.3479 and 1.3496. In the upcoming European session, Eurozone final manufacturing PMI data will be released, which will be a risk event for the euro.
Sterling extended lower in Asia, falling early in the session to 1.6419 and traded sideways before ending at 1.6428 with a 0.04% gain. UK manufacturing PMI data due in the European session will be closely watched.
The aussie came under pressure after negative Australian data releases. The aussie fell 0.06% in the session to end at 0.8748. The China official manufacturing and services PMI data are also negative for the Australian currency since China is a major trading partner for Australia.
Apart from the European data releases, investors are also focusing on US ISM manufacturing survey, hoping to see more robust data following a series of disappointing data last week, which put the dollar under pressure.
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