Forexlive European FX news wrap: UK jobs data beats, US-Russia talks positive

• Kremlin’s Aide Ushakov: Russia – US negotiations went well – IFA

• ECB’s Holzmann: Services and Core inflation are concerns
• Germany February ZEW survey current conditions -88.5 vs -90.0 expected
• BOE’s Bailey: We are in a period of heightened uncertainty
• Don’t expect any breakthroughs from US-Russia talks today
• US-Russia talks get underway in Riyadh
• France January final HICP +1.8% vs +1.8% y/y prelim
• What are the main events for today?
• BOJ governor Ueda: We are aware of views we had not been clear enough on policy guidance
• UK December ILO unemployment rate 4.4% vs 4.5% expected
• Russia dubs Trump as a problem solver ahead of peace talks in Riyadh
• RBA governor Bullock: We still think policy is in restrictive territory
• RBA’s Bullock: If we thought we needed to raise rates further previously, we would’ve
• RBA governor Bullock: We cannot declare victory on inflation yet
• FX option expiries for 18 February 10am New York cut

It’s been a relatively calm session with limited newsflow and data release. The main highlight was the UK Employment report and the US-Russia talks in Saudi Arabia.

The UK data beat expectations across the board keeping the BoE in an uncomfortable position amid strong wage growth and high inflation.

The US-Russia talks have ended in a meeting that lasted 4.5 hours. It’s been reported that the talks have went well. It was also reported that the Trump-Putin meeting that was expected for next week won’t take place but the conditions for the meeting were discussed.

The focus now switches to the Canadian CPI report. The Canadian CPI
Y/Y is expected at 1.9% vs. 1.8% prior, while the M/M reading is seen at 0.1%
vs. -0.4% prior. The Trimmed-Mean CPI Y/Y is expected at 2.6% vs. 2.5% prior,
while the Median CPI Y/Y is seen at 2.5% vs. 2.4% prior.

This article was written by Giuseppe Dellamotta at www.forexlive.com.