FX Morning Colour: DXY drawing some lines in the sand

USD

The Dollar showing some signs of stabilisation, if not recovery across the board, as the Index holds in above 93.000 after Thanksgiving and ahead of another shortened US session, which will keep trading conditions thin and choppy.

GBP

An early gainer and outerperformer (albeit marginal) on more Brexit headlines, as UK PM May and the EU’s Juncker both claim progress made in negotiations ahead of more ‘crucial’ talks. Cable back above 1.3300 as a result, and Eur/Gbp sub-0.8900.

EUR

Still firm vs the Greenback, with the headline pair almost matching its November peak (1.1861) and the next key chart resistance (1.1880). Looking towards November’s Ifo survey for potential further gains, but also watching latest German political developments.

JPY

Off best levels vs the Usd, as strong technical support just above 111.00 is respected (for now), but 112.10 widely seen capping the upside within a new lower range.

CAD

Loonie still deriving support from rising oil prices ahead of the November 30 OPEC meeting, but hampered by NAFTA talk disagreements (like the MXN), with Usd/Cad back above 1.2700 as a result).

NZD

Kiwi on the backfoot again (sub-0.7900 vs the Usd) after mixed NZ trade data overnight. Note, a decent 500mn+ option expiry runs off today at 0.6850.

EM

TRY holding above record lows vs the Usd amidst more official verbal intervention to prop the Lira, CNY stronger again vs the Dollar after another lower PBOC mid-point fix.

24 Nov 2017 - 08:53- Forex- Source: ransquawk

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