UK PMI
manufacturing will be a main focus in European session and is expected to drop
slightly to 51 in January. Sterling has so far been the weakest European major
but EUR/GBP's rally is taking a breath for the moment. Any downside
disappointment in the PMI data today would likely trigger another rally in
EUR/GBP. Also to be released in European session are Swiss SVME PMI, Eurozone
PMI manufacturing final, CPI and unemployment rate.Heavy weight data will be
released from US today. Non-farm payroll is expected to rise 155k in January
while unemployment rate is expected to be steady at 7.8%. ISM manufacturing
index is expected to drop to 50.5 in January. U of Michigan confidence and
construction spending would be released. While the data might trigger some volatility
in dollar pairs, they should have no impact to the underlying trend in Euro and
yen. That is, we'd suggest to stay long in EUR/JPY, as well as USD/JPY, and
forget about other pairs for today.
