FX Morning Colour: Dollar weaker heading into holiday-shortened week end

DXY

The Index is back below 94.000 yet again on broad Usd losses ahead of Thanksgiving, with comments from outgoing Fed Chair Yellen weighing as she expresses serious doubts about inflation reaching target due to factors that may not be transitory. The DXY is holding around 93.770, but in danger of revisiting recent multi-week lows under 93.500 if the Greenback succumbs to more selling pressure in holiday-thinned volumes.

EUR

Eur/Usd has rebounded strongly from sub-1.1720 lows, and through key tech resistance around 1.1750, just, as residual offers from 1.1780-1.1800 continue to obstruct re-tests of the highs above 1.1800. Option expiries could exert more direction influence as Thanksgiving approaches and nearest strikes to watch in decent size are at 1.1750-75 (1.2 bn) then 1.1800-30 (2.4 bn). Eur/Gbp also firmer and just under 0.8900, with potential for volatility around the Frankfurt fix (385 mn expiry at the figure too).

JPY

Firmest of the G10 vs the Dollar, with the pair testing lows just south of 112.00 (1.4 bn expiry), and a market contact also noting selling in the Gbp/Jpy cross through 148.50 (program offers reportedly) and key chart support at 147.50.

AUD/NZD

Narrowly mixed vs the Usd, as the Aud/Nzd cross dips sub-1.1100 again and as the Aud only garnered brief support from strong data overnight.

22 Nov 2017 - 08:57- Forex- Source: ransquawk

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