Morning Juice – Europe Session Prep

Good Morning Traders.
It is Monday the 2nd of February. Here is what to look out for today.

Sentiment
The yen slid after Japanese Prime Minister Sanae Takaichi said a weak currency can be a major opportunity for export industries, cooling speculation that her government is poised to intervene to support the yen. For much of the time that President Donald Trump was mulling his potential choice for the next chair of the Federal Reserve, the debate in markets swirled around whether his pick would lower interest rates as aggressively as he preferred. Oil plunged after notching its biggest monthly gain since 2022, with geopolitical risk premiums fading after US President Donald Trump said Washington is talking with Iran. Asset managers boosted their bearish dollar positioning just days before news of Kevin Warsh’s nomination as Federal Reserve chair triggered the greenback’s biggest gain since May. Federal Reserve Vice Chair for Supervision Michelle Bowman said she saw merit in waiting to lower rates further given elevated inflation and uncertainty over potential distortions in economic data stemming from last year’s record-long government shutdown.

Docket
02:00 ET
German Real Retail Sales
YoY – Forecast: 2% | Prior: -1.4% | Range: 4.2% / 0.8%
MoM – Forecast: 0.1% | Prior: -0.3% | Range: 0.2% / -0.5%

03:50 ET
French Manufacturing PMI
Forecast: 51 | Prior: 51 | Range: 51.2 / 51

03:55 ET
German Manufacturing PMI
Forecast: 48.7 | Prior: 48.7 | Range: 48.9 / 48.7

04:00 ET
Eurozone Manufacturing PMI
Forecast: 49.4 | Prior: 49.4 | Range: 49.6 / 49.1

04:30 ET
UK Manufacturing PMI
Forecast: 51.6 | Prior: 51.6 | Range: 51.7 / 51.2