The BoE Super Thursday release weighed on GBP while EUR/USD ends the session higher ahead of nonfarm payrolls report
The notable FX event of the day has come in the form the BoE’s Super Thursday, with the dovish BoE release weighing on GBP across the board to see the currency come away from recent highs. The BoE voted 8-1 in favour of keeping rates on hold, while QIR report saw a downbeat CPI outlook, thereby pushing back the expectations of many for a BoE rate lift off. The BoE also lowered the growth outlook, with Carney’s press conference largely a reiteration of the QIR.
Away from the BoE, USD/JPY also garnered attention early in the session, with the pair moving higher above the 121.50 level before gains were capped by a touted double-no-touch (DNT) expiry at 122.00 (118.00 and 122.00 structure). While EUR saw initial softness after the unexpected fall in German factory orders (M/M -1.70% vs. Exp. 1.00%), however, EUR/USD went on to close out the session in positive territory on the back of downbeat weekly jobs data out of the US ahead of tomorrow’s nonfarm payroll report (Initial Jobless Claims 276K vs. Exp. 262K).
Looking ahead, the highlight tomorrow comes in the form of the US nonfarm payroll report, with focus particularly on this month’s reading given that December now appears back on the table for a Fed rate lift off. Tomorrow also sees German and UK industrial production as well as UK manufacturing production, and a number of scheduled speakers including BoJ’s Kuroda, Fed’s Bullard and Brainard and ECB’s Praet, Knot, Mersch and Hansson.