Forex Today: Yen volatile on BOJ ops, UK PMI, NFP - Key

The Aussie stalled its recovery mode and remained largely subdued following the release of worse-than expected Chinese manufacturing PMI data. However, the BOJ bond-buying plans emerged the main key event in Asia, triggering some volatility around the yen and Japanese stocks. While PBOC tightening action added to  the cautious tone prevalent in the markets, a typical scenario before the US payrolls data.

Later today, the final services PMI from Euro area will be published ahead of the UK Services PMI and Eurozone retail sales data.  While in the NA session, the US NFP report will take center-stage, alongside releases of the US factory orders and ISM services PMI data. Besides, FOMC member Evan’s speech will be also closely eyed.

Main topics in Asia

BOJ's JGB purchases operations: BOJ participates in bond buying, Yen bought up

The Japanes Yen is strengthening across the board despite the decision by the Bank of Japan to participate in bond market operations today.

BOJ offers to buy 5-10yr JGB's in unlimited amounts, USD/JPY rebounds

Livesquawk reports latest headlines from the Bank of Japan (BOJ), stating that the central bank is offering to buy 5-10yr JGB's in unlimited amounts, however, at fixed-rate.

PBOC continues to tighten funding conditions, raises rates for OMO

The People’s Bank of China (PBOC) raised rates for Open Market Operations (OMO) as the central bank continues to tighten funding conditions and rein in leverage.

China's Jan Caixin PMI misses expectations, output and new orders slow down

China's Jan 207 Caixin manufacturing PMI came at 51.0 vs 51.8 expected and 51.9 last, as output and new orders increased at weaker rates.

US to issue new Iran sanctions

As per Reuters report, President Donald Trump is to impose new sanctions on multiple Iranian entities. 

Key focus for the day ahead

UK Services PMI: Slightly softer tone seen in Jan - TDS

Prashant Newnaha, Rates Strategist at TDS publishes his expectations on the upcoming UK services PMI data due later in the European session.

NFP Preview: Expect average hourly earnings to rise 0.3% m/m and 2.8% y/y – GS

Analysts at Goldman Sachs provide a brief insight on the expectations for the upcoming key US employment data, the NFP.

Week Ahead for the Dollar Bloc – Deutsche Bank

Economists at Deutsche Bank offer a sneak peek into the key events lined up for release next week that influence the commodity currencies/ dollar bloc.

Five reasons to stay short the pound - DB

Analysts at Deutsche Bank believe that any rallies in cable is unsustainable, especially in light of neutral BOE seen a day before.