Session Recap: FX market takes a breather

Consolidation is the theme of the day in the FX market after the strong USD rally witnessed last Friday in the wake of the strong US NFP figures. In the absence of major economic events or releases, most crosses were left within limited ranges. The pound is among the worst performers, having hit a fresh 32-month low of 1.4865 during the European session. The euro continues to oscillate around 1.3000, while the USD/JPY holds near a 3 ½-year high. US stocks opened with mild losses, tracking their European peers.

Main Headlines in Europe (in chronological order):

Germany: Trade surplus narrows €15.7B in January

France Industrial Output (MoM): -1.2% in Jan from -0.1% in Dec

Switzerland: Real Retail Sales grow less than expected in January

Forex Flash: What lies ahead of EUR/USD? – Westpac and Commerzbank

Forex Flash: Remain bearish CAD and AUD - BBH

Italy 4Q Gross Domestic Product (YoY) remains at -2.8%

Italy Gross Domestic Product (QoQ): -0.9% in 4Q from -0.2% in 3Q

Forex Flash: Additional USD gains likely - BBH

Greece: Gross Domestic Product n.s.a (YoY) (4Q): -5.7% vs -6.9% (3Q)

Fundamental Morning Wrap: A Continental Breakfast and some Chinese Take Out

Portugal 4Q Gross Domestic Product (YoY): -3.8%; -1.8% (MoM)

European indexes and US futures in risk-off on Italy downgrade and US budget

Euro: uncertainty could rule ahead in the week

Forex: GBP/USD moves off 32-month low

Troika inclined towards extending Portugal’s rescue loan maturity