FX Daily Wrap: Greenback retains bid tone, especially vs the Loonie
Consolidated or extended gains vs G10 counterparts, with the Dollar index (DXY) nudging up to 93.800 at one stage, but not really building enough momentum to test the next big figures in volatile pre-NFP markets and with US weekly claims just missing consensus. 93.500-94.000 looks set to cover the range ahead of Friday’s key monthly BLS jobs update.
No respite for the Loonie following the BoC’s dovish, if not downbeat post-meeting statement (yesterday), despite a decent Canadian building permits beat and only slight less frothy Ivey PMI. Usd/Cad extended gains above 1.2800, absorbing offers between 1.2840-50 on the way towards 1.2870.
Buffeted by Brexit headlines once again, with Cable looking destined for a swoon to 1.3300 at one stage amid stops below 1.3325, but recovering well to reclaim the 1.3400 handle (more than once) with the latest reports from an EU official suggesting the ‘only’ remaining deal clincher is the Irish border dispute, aside from a few billion on the actual UK divorce bill. Eur/Gbp and choppy either side of 0.8800.
Both rangebound vs the Greenback, the former seemingly evading stop sales stacked around 1.1780-75 to pivot the 1.1800 level where hefty option expiries reside (circa 4 bn today and Friday), and the latter veering between 112.20-80, albeit mainly at the upper end.
The weakest links all session, with Aud/Usd breaching more technical supports and approaching next downside targets at 0.7505 and 0.7500-0.7499. Kiwi largely down in sympathy, but also as the cross revisited 1.1000.
07 Dec 2017 - 15:27- Forex- Source: ransquawk
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