FX Daily Wrap: Dollar remains broadly softer pre-FOMC

DXY

The Index largely traded sideways within a tight 93.720-900 range awaiting more impetus from the Fed on Wednesday, and with only a brief dip on reports of an explosion in NY (terror-related, but thankfully no fatalities). 94.000-93.500 looks intact until the FOMC meeting and the latest SEP including fresh dots are scrutinised, assuming rates are hiked 25 bp as is pretty much unanimously anticipated.

NZD

The Kiwi has outperformed all day in a positive/bullish reaction to news that former assistant Governor and head of financial stability, Orr will become the new RBNZ chief from the end of Q1 next year (seen as a steady hand and perhaps less dovish than the current stand-in incumbent). Nzd/Usd back over 0.6900, but not really threatening to trip expiries at the nearest upside target (0.6950 in 325 mn).

AUD

The next best G10 currency and gainer vs the Usd (just) as key support just ahead of and under the 0.7500 survived several serious tests, and getting lift on the back of its Kiwi cousin. Aud/Usd got pretty close to option interest from 0.7540-50 (370 mn), but not in time for the cut. Aud/Nzd cross sub-1.0900, but off the lows.

JPY/EUR

Late range breakouts and gains vs the Greenback, with Usd/Jpy down to 113.25 and Eur/Usd up through 1.1800. The former pair did not quite test expiries in size (1 bn) between 113.00-10, and similarly the latter rallied a tad too late to touch big option strikes from 1.1800-20 (1.3 bn).

CAD

Flattish vs the Usd despite firmer oil prices, but with 1.2880 resistance helping to contain the Loonie’s downside.

GBP

Ongoing Brexit uncertainty and UK Government rifts over the breakthrough deal hampered the Pound, with Cable losing a bit more ground from the 1.3400 handle and Eur/Gbp looking firm above 0.8800 again.

NOK/SEK

Both losers vs the Eur, the former on weaker than expected inflation data ahead of Thursday’s Norges Bank policy meeting (Eur/Nok almost up to 9.9000 at one stage) and the latter on a mixture of a downbeat housing outlook from a local bank and PPM flows (Eur/Sek up through 10.0000 and 1 year plus highs eyeing 10.0816 next).

11 Dec 2017 - 15:35- Forex- Source: ransquawk

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