Asian Session Forex Recap – Feb. 2, 2015

  • Chinese official manu PMI down from 50.1 to 49.8
  • China’s official non-manu PMI dropped from 54.1 to 53.7
  • Chinese HSBC manu PMI fell from 49.8 to 49.7
  • Nikkei closed 0.66% lower for the day
  • Manufacturing PMI from Spain, Italy, and the U.K. due today

Forex traders seem excited to place their bets for the top-tier events this week, as most pairs made gaps over the weekend. EUR/USD was off to a running start as it opened above the 1.1300 handle on Monday’s trading after closing at 1.1275 on Friday while GBP/USD also gapped higher and kicked off close to 1.5100.

Asian markets focused on the Chinese PMI releases over the weekend and earlier in the data, as the figures indicated that the world’s second largest economy is still in a weak spot. The official manufacturing PMI for January fell from 50.1 to 49.8, reflecting industry contraction and hitting its two-year low. The HSBC version of the report also showed weakness, as the reading fell from 49.8 to 49.7 and reflected a deeper slowdown. Meanwhile, the official non-manufacturing PMI also declined from 54.1 to 53.7 in January.

The Nikkei closed 0.66% lower for the day as financial markets digested the news and stayed away from risk. Despite that, the Aussie managed to hold on to its gains ahead of the RBA statement tomorrow, with AUD/USD and AUD/JPY trading 0.41% higher so far.

Manufacturing PMIs could continue to drive forex price action in the next few hours, with Spain, Italy, and the U.K. set to print their respective readings. The U.K. manufacturing PMI due 10:30 am GMT could spark the largest price reaction among the three, as the industry could show an improved reading from 52.5 to 52.9 and boost the pound. Also lined up for today is the Spanish unemployment change report which could show a 32.4K drop in joblessness.

U.S. Session Recap

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