- Chinese CB leading index up by 1.2%, upward revision in Dec figure
- New Zealand quarterly inflation expectations still at 2.3%
- UK CBI realized sales, BBA mortgage approvals lined up
- European Union to release economic forecasts
Consolidation was the name of the game for most major currencies in today’s Asian trading sessions, as EUR/USD moved sideways below 1.3750 while USD/JPY fought to stay above 102.50. As for GBP/USD, the pair continued its recovery after finding support around 1.660o.
China printed a 1.2% increase in its CB leading index for January, hinting at a rosier outlook for the world’s second largest economy. On top of that, there was an upward revision in the December figure from 0.4% to 0.8%, enough to give risk appetite a small boost for the past few hours. This allowed the Nikkei to close with a 1.44% gain, pushing yen pairs slightly higher.
New Zealand’s quarterly inflation expectations report showed a 2.3% figure, unchanged from the previous period. However, the Kiwi and the rest of the commodity currencies seemed hesitant to extend their gains as the Chinese yuan chalked up its sharpest decline in two years. Apparently, traders are buzzing about a possible PBoC decision to narrow trading spreads to prevent speculative gains for the Chinese currency.
Up ahead, we have the UK CBI realized sales and BBA mortgage approvals data. Both reports are likely to show small improvements, which could allow the pound to hold on to its gains or go for more. Also due in the next few hours are economic forecasts from the European Union so make sure you stay on your toes for a potential breakout among consolidating euro pairs!
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