- Chinese HSBC flash manu PMI up from 49.6 to 49.8 in Jan
- Japanese flash manu PMI up from 52.0 to 52.1 this month
- Nikkei closed with a 1.05% gain for the day
- U.K. retail sales and euro zone PMIs up for release
Euro bears are still on a roll! The shared currency is still bleeding against its major forex counterparts in today’s Asian trading session, as EUR/USD is down 45 pips (-0.37%) and EUR/JPY is facing a 57-pip loss (-0.4%) at 134.00. Looks like Draghi and his men did a lot of damage after their QE announcement yesterday!
Data was relatively light in the past few hours, with only a couple of manufacturing PMIs released. China’s HSBC flash manufacturing PMI climbed from 49.6 to 49.8 in January, reflecting a slower contraction in the industry. Meanwhile, Japan’s flash manufacturing PMI for the same month logged in a small improvement from 52.0 to 52.1.
The Aussie failed to benefit from these readings, as AUD/USD is down 43 pips (-0.53%) and AUD/JPY is down 55 pips (-0.57%) to 94.50. The Japanese yen also seemed to gain support from the rebound in Asian equities, as the Nikkei marked a 1.05% gain for the day. GBP/JPY is down 0.19%, USD/JPY is down 0.06%, and NZD/JPY is down 0.31%.
Up ahead, the forex calendar shows that there are a few reports that could rock the euro and the pound in the next few hours. The U.K. is set to print its retail sales report at 10:30 am GMT and possibly show a 0.6% decline in spending for December, with a weaker than expected result likely to trigger more pound weakness. Germany and France are scheduled to print their manufacturing and services PMIs starting 9:00 am GMT and might lead to volatility among euro pairs. Stay on your toes!
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