Forex Analysis for Wednesday 1st February 2017
Canadian GDP m/m beat expectation (0.4% vs 0.3%).
According to the Times Shadow MPC, 4/8 of the panel’s members favour a rate increase now and 3 others reckon that the Bank was wrong to have cut them to 0.25% and to have added GBP 60bln of QE last August. (Times)
This morning we had UK Manufacturing PMI coming in on expectation at 55.9.
The USD is trending downwards while US equities consolidate just off all-time highs. The GBP starts to move upwards again while UK equities remain just above their respective 50MA lines. The EUR consolidates while the Euro50 breaks down through short term support. The JPY consolidates while the Japan 225 bounces up off the 50MA. Oil moves sideways around USD53/bbl.
Later today in the US we have the first post-inauguration FOMC Statement and Fed Funds Rate.
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