European Morning Wrap: Interesting Morning. Market Don't Like Sterling Very Much

German January final manufacturing PMI 49.8, up from 46.0 in December.  Above flash read of 48.8
Eurozone January final manufacturing PMI 47.9, up from 46.1 in December.  Above flash read of 47.5
Sharp's Onishi says yen remains in 'strong' territory
Swiss January PMI 52.5, better than Reuter's median forecast of 50.5
UK January manufacturing PMI falls to 50.8 from a revised 51.2 in December, slightly below Reuter's median forecast of 51.0
'Catastrophic' EU exit would leave City defenceless against regulatory attack - AEP at The Telegraph
UK's big 4 banks brace themselves for more compensation claims - The Guardian
In Spain, bonds' vicious cycle turns virtuous - Wall Street Journal
Carney awaited as BOE inertia danger looms in recession battle -  Bloomberg

Poor morning for sterling, weak cross the board.  Cable down at 1.5823 from early 1.5875 having been as low as 1.5807.  EUR/GBP up at .8623 from early .8578, having been as high as .8647 (just shy of touted .8650 barrier option interest)

Among negatives for sterling at present;  worries UK is hurtling toward triple-dip recession, concerns surrounding possible EU referendum, concerns UK will soon by losing it's cherished AAA rating,  worries about policy inertia as the Old Lady sits on her hands awaiting Carneys arrival, and speculation the Canadian wunderkid (well he's younger than me) will ease policy further on his arrival.

EUR/USD up marginally at 1.3650 from early 1.3620 having been as high as 1.3674, blowing up 1.3650 speed bump along the way (we call them speed bumps now not barrier as they're not proving a barrier to anything) Next speed bump comes at 1.3675.

USD/JPY effectively unchanged at 92.10.