FX Daily Wrap: Pound and Euro perky in pm session


A strong second half performance helped Sterling end Monday on the front foot, albeit amidst general Usd weakness. Cable climbed steadily through 1.3350 (where a hefty option expiry had been keeping the upside in check), then 1.3380 (where a smaller amount of expiry interest resided) and on to 1.3400+, but not threatening offers said to be placed around 1.3466. Eur/Gbp retreated through 0.8800, but only briefly as the single currency also benefited at the Dollar’s expense.


The other best G10 major vs the Greenback as optimism surrounding US tax reforms waned somewhat on reports that Senator Collins (one of the swing voters) is still considering the bill. Eur/Usd reclaimed the 1.1800 level, but could not advance much further despite the DXY drifting down towards 93.500 again.


Pared best gains vs their US counterpart, but Aud/Usd held firm above 0.7650 and still looks set for further gains while above 0.7600 and 0.7580 chart support below that.


Signs of some safe-haven demand as the Dollar wobbled ahead of the House tax reform vote on Tuesday, with the headline pairs back down through 0.9900 and 112.50 respectively, but the latter not getting close enough to trigger a big expiry at 112.25 (1.5 bn).


An unexpected boost for the Krona as Norges Bank Governor Olsen underlined the latest more hawkish rate guidance, with a hike likely before the end of next year. Eur/Nok back down through 9.8300 (just and briefly) from highs a little over 9.8800.


Up over 3% vs the Usd in advance of the official ANC party leadership results on bets that Ramaphosa will prevail – Usd/Zar down to sub-12.8000 levels at one stage.

18 Dec 2017 - 15:28- Forex- Source: ransquawk

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