US Dollar Stays Unstable Versus Major Currencies

Market Reviews

The US dollar is trading mixed against the major currencies after the release of data on employment. Initial jobless claims fell by 1k to 230k in the week ended January 27. Challenger job cuts showed -2.8% yoy decline in planned layoffs.

The euro strengthened against the US dollar, and the EUR/USD pair rose to $1.2460 level during the European session. Activity indicators in the production sector of the Eurozone continue to hold near the record despite the fact that the index for the manufacturing sector weakened slightly at the beginning of the year. According to the IHS Markit survey, the Final Manufacturing PMI fell to a three-month low in January, 59.6 from a record high of December 60.6.

German PMI manufacturing was finalized at 61.1 level. France PMI manufacturing increased to 58.4. Swiss retail sales rose 0.6% yoy in December.

The British pound rose to weekly highs against the dollar, before slightly slowing growth, despite weak data on business activity in the manufacturing sector. The manufacturing sector in the UK recorded a continued decline in activity in early 2018, falling to the lowest level since June last year. The Manufacturing PMI from IHS Markit/CIPS fell to 55.3 from 56.2 in December. Economists predicted an estimate of 56.5.

China Caixin PMI manufacturing was unchanged at 61.6 in January, meeting the forecasts. Australia import price index increased by 1.5% qoq in Q4. Building approvals fell by 20% mom in December. Japan PMI manufacturing rose to 54.8 in January.