FX Daily Wrap: little respite for the Greenback pre-Thanksgiving
Undermined by considerably weaker than forecast US durable goods data (on the face of it and notwithstanding upward back revisions) with the Index slipping further towards the psychological 93.500 level and recent lows just below. DXY now close to 93.600 vs almost 94.000 at best, and prone to more downside on more position squaring ahead of the early US close, Thursday’s full day holiday and another truncated session to close out the week. FOMC minutes could provide the Dollar with some Thanksgiving cheer, but in truth they will have to be hawkish beyond underscoring December tightening expectations.
Vying with each other for best performer vs the Greenback, with Usd/Jpy down through 111.70 and key chart levels around 111.70-75, while Usd/Chf is at 1 week lows near 0.9850 and stops said to be situated under 0.9840.
Back to within striking distance of 1.1800 vs the Usd, having held above 10 DMA support at 1.1733. Offers in the 1.1780-1.1800 region now being absorbed, with more touted on a clear break above 1.1820 where stops are expected.
Initially softer on UK Budget growth downgrades (from the OBR), but then boosted by stamp duty exemptions and the aforementioned Dollar demise. Cable up above 1.3275, and eyeing 1.3300 next on the upside.
Through 1.2750 support vs the Usd, with firmer oil aiding the Loonie to an extent.
Both antipodeans off worst levels vs the Dollar, but capped below 0.7600 and 0.6900 respectively.
22 Nov 2017 - 15:35- Forex- Source: ransquawk
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