FX Morning Colour: Eur holding in despite German political problems
Resilient in the face of Germany’s struggles to form a new Government and the threat of another election. Eur/Usd continues to find support ahead of stops around 1.1720 and bids at 1.1700, with reported fixing demand in Asia propping the pair, but the 100 DMA around 1.1745-50 capping recovery gains.
Firmer around the 94.000 handle in thin holiday-impacted trade, with the Usd gaining ground vs most major counterparts on a generally more risk-on mood.
Inching back down towards 0.7500 vs the Greenback after RBA minutes reiterating uncertainty about wage gains translating to overall inflation, among various factors keeping prices benign. Kiwi weakening in sympathy with the Aud, and testing bids/support around 0.6800 again – Aud/Nzd cross hovering just under 1.1100.
Holding a firmer line, Cable around 1.3250 and Eur/Gbp sub-0.8900 on increasing prospects that the UK will offer the EU a bigger Brexit settlement, as more Cabinet Ministers signal their willingness to back a Gbp20 bn+ payment.
21 Nov 2017 - 08:43- Forex- Source: ransquawk
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