24 January 2017 at 12:55 GMT
European equities were buoyed by the UK supreme court's Brexit ruling on Tuesday, and miners and energy shares were among the best-performers.
The US dollar recovered from remarks on Monday from US president Donald Trump's nominee to become treasury secretary, Steven Mnuchin, who said in a written reply to US senators that an "excessively strong dollar" could have a negative effect on the US economy in the short term.
The Eurozone's January preliminary manufacturing PMI came in at 55.1, above an expected 54.8.
Germany January preliminary manufacturing PMI also beat expectations, at 56.5 versus an average expectation of 55.4.
EazyJet Plc shares sank after the budget airline warned that weaker sterling and higher fuel costs would affect earnings more than previously expected.
- US January prelim. Markit manufacturing PMI (54.5 exp.) (1445 GMT)
- US December existing home sales (5.5 exp.) (1500)
- US January Richmond Fed manufacturing index (1500)
- US Weekly API oil inventories (2130)
It's been a fairly dynamic FX session, with the USD index recovering by 0.25% from the key support line near 100 points to a current level of 100.3. The support at 100, which is also the 100-day EMA, saw a few attempts to be breached earlier in the night, following US treasury secretary nominee Steven Mnuchin’s comments
on potentially negative short-term impact of a stronger dollar.
EURUSD witnessed some selling from the 100-day EMA area near 1.077 and is currently traded at 1.073, which is a -0.3% daily change. The Eurozone’s PMI beat estimates (55.1 vs an expected 54.6), but didn’t have much impact on the market. GBP is offered versus USD, with the pace accelerating after the UK supreme court's ruling did not change plans to trigger Article 50 at the end of March. GBPUSD last traded at 1.243, down 0.8%. USDJPY has bounced by 0.6% from support at 112.50 and is currently nearing local resistance at 113.5.
FX Options volatilities
Shares in BT Group plunged 19% after British telecoms company said it had to triple provisions to cover historical accounting errors at its Italian unit and further cut its outlook for coming years.
EazyJet Plc shares slid 9.1% after the budget airline said the weaker pound and higher fuel costs would affect earnings more than earlier expected.
Mid-session Europe is part of TradingFloor's stable of commentary running through from the US close, through Asia to the European session. Click below to keep abreast of all the developments as they happen.
The British prime minister will now have to ask parliament to approve Brexit,
complicating the government's plans for exiting the EU. Photo: iStock