<p style=““ class=“text-align-justify“>The interview is alongside his colleague Villeroy, who says that the ECB will probably reach peak rates by the summer. You can check out the full interview <a target=“_blank“ href=“https://www.lexpress.fr/economie/la-derive-de-la-dette-publique-en-france-est-preoccupante-villeroy-de-galhau-nagel-le-debat-WW4MMMETSJDXLEMTBHJCGEUPFA/“ target=“_blank“ rel=“nofollow“>here</a> but for the most part, these are remarks that have already been echoed for quite a while now by ECB policymakers.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>European indices opened with slight gains but have given that all back now as the early optimism fades. US futures have also moved lower and while I want to say that the PMI data today had a helping hand in that, I can only argue that the UK report was poorer than expected. The French and German readings were a mixed bag as noted <a target=“_blank“ href=“https://www.forexlive.com/news/not-worse-but-not-better-either-for-europe-to-start-the-new-year-20230124/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>In any case, stocks in Europe have nudged lower with the DAX down by 0.1% and UK FTSE down by 0.4% currently. Meanwhile, the dollar has steadied itself and is trading little changed against the euro, franc, loonie, aussie and kiwi after slight losses earlier. Of note, the aussie and kiwi have also seen their <a target=“_blank“ href=“https://www.forexlive.com/news/aussie-and-kiwi-both-target-an-upside-break-against-the-dollar-20230124/“ target=“_blank“ rel=“follow“>stronger gains from earlier</a> fade.</p><p style=““ class=“text-align-justify“>AUD/USD is now down 0.1% to 0.7018 while NZD/USD is flat at 0.6483 at the moment.</p><p style=““ class=“text-align-justify“>The pound is the notable laggard on the session with GBP/USD now down 0.4% to 1.2320 with the low touching 1.2310 moments ago. That’s a steep drop from around 1.2380 from before the PMI data earlier. The near-term bias has also turned more neutral now on a drop below the 100-hour moving average (red line) as this keeps with the rejection from the December highs of 1.2443-46:</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“><a target=“_blank“ href=“https://www.forexlive.com/terms/e/eur-gbp/“ class=“terms__main-term“ id=“e5b85617-1e4e-420a-84bf-96f67c9b9100″ target=“_blank“>EUR/GBP</a> saw a spike up from 0.8780 to 0.8800 as buyers stay in the hunt of a fourth straight day of gains, since bouncing off its 100-day moving average at around 0.8720 last week. The pound is falling after the poor UK PMI data, which showed that services sector activity slumped to a two-year low in January.</p><p style=““ class=“text-align-justify“>After the collapse in retail sales, this further highlights that the cost-of-living crisis is worsening in the UK and we are starting to see signs of it hitting the labour market as well. That might point towards a more painful downturn if the conditions keep up in the months ahead.</p><p style=““ class=“text-align-justify“>As for the pound, it’s hard to be optimistic. Even against the dollar, it looks like cable has failed to contest a break above its December highs of 1.2443-46 for now:</p>

This article was written by Justin Low at www.forexlive.com.