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UK services PMI and EU negotiations in focus – Lloyds Bank

FXStreet (Delhi) – Research Team at Lloyds Bank, suggests that the UK January Services PMI survey will provide a guide to the strength of activity at the start of the year.

Key Quotes

“Despite the rise in financial market volatility, the market consensus is for a broadly steady reading (it was 55.5 in December), which would suggest that the economy continued to expand at a pace close to ‘trend’.

Negotiations between the UK and the EU remain in focus. Yesterday, EU Council President Donald Tusk circulated a ‘new settlement’ for the UK. Agreement at the next EU Summit on 18-19 February could pave the way for the referendum on EU membership to take place as soon as June. European Commission President Jean-Claude Juncker is due to speak at the European Parliament this morning and UK Prime Minister’s Questions take place at midday.”

USD/CAD deflates to 1.4050 ahead of ADP report

The greenback is now retracing part of the earlier spike to the 1.4100 handle vs. its Canadian peer, with USD/CAD returning to the mid-1.4000s for the time being...
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AUD still at risk even vs NZD - BNPP

Research Team at BNP Paribas, maintains a bearish bias on AUDUSD in the aftermath of the RBA rate decision, holding on to our 0.70 put expiring on Friday.
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