Themes

· General mood is “risk off”

· Japanese Flash Manufacturing PMI slightly weaker than expected at 53.2

· Oil slightly firmer in Asia today, currencies remained quiet

What’s Moving

A quiet open in Asia amid a lack of clear fresh incentives overnight saw some light profit tang on USD/JPY and AUD/USD longs. Volumes were light early and the market largely ignored slightly weaker than expected Japanese Manufacturing PMI numbers, which were on the soft side.

Afternoon dealings saw oil catch a small bid on buying out of Hong Kong, but ranges on currencies remained tight and lightly traded.

The Swiss National Bank will be meeting tonight, although the market is not expecting a change in rates or policy.

Data tonight sees:

· French Flash PMI Services (E: 55.0), Manufacturing (E: 55.1)

· German Flash PMI Services (E: 53.6), Manufacturing (E: 55.9)

· Euro-zone Flash PMI Services (E: 54.3), Manufacturing (E: 56.0)

· U.K. Flash PMI Services (E: 58.0), Manufacturing (E: 57.0)

· U.S. Core Durable Goods (E: +0.5%)

· U.S. Initial Claims (E: 210k)