EUROPEAN FX UPDATE: USD mixed vs. peers with JPY top of the leaderboard

USD: DXY +0.1%; 106.72

• DXY higher but with the USD showing a mixed performance vs. peers. Fresh macro drivers for the US remain light and as such, risk sentiment may carry sway for the Greenback. Today's US slate sees US Jobless Claims, Philly Fed Index, US Existing Home Sales, Fed’s Hammack, Goolsbee & Barr. Traders still await Trump's Treasury Secretary pick.


• DXY has been as high as 106.74 but has stopped shy of yesterday's 106.91 peak. As a reminder, the YTD high sits @ 107.06.

EUR: EUR/USD -0.2%; 1.0519

• EUR on the backfoot vs. the USD with some modest weakness triggered by geopolitical angst surrounding Russia-Ukraine. ECB's Stournaras has backed a 25bps rate cut in December but wishes to cut at every meeting until the Bank reaches 2% rates. It's a busy ECB speaker slate today with Patsalides, Lane, Elderson & Holzmann all due on deck. However, greater attention lies on tomorrow's flash PMI metrics. As it stands a 25bps rate cut is priced @ 72%.


• EUR/USD has been as low as 1.0515 but is holding above yesterday's 1.0506 floor. As a reminder, last week's YTD floor kicks in @ 1.0495.


• EUR/USD opex: 1.0500 (2.8bln), 1.0515 (1.9bln), 1.0535-40 (1.6bln), 1.0550 (1.4bln), 1.0600-10 (2.6bln), 1.0650 (1.7bln).

JPY: USD/JPY -0.7%; 154.39

• JPY firmer vs. the USD in what has been a choppy week for USD/JPY. Fresh macro drivers for the US and Japan have been lacking with JPY instead gaining impetus from some of the risk-aversion triggered by tensions between Russia and Ukraine and an extension in pre-market losses for NVIDIA.


• USD/JPY has delved as low as 154.16 but is still some way off the WTD low printed on Tuesday @ 153.22.

GBP: GBP/USD -0.2%; 1.2631

• GBP on the backfoot vs. the USD and extending downside after yesterday's failure to hold above the 1.27 mark post-UK CPI. Fresh macro drivers for the GBP are light and the currency is flat vs. the EUR. Today's dock sees another appearance from BoE's Mann. However, we've heard a fair bit from her in recent weeks and she will inevitably stick to her hawkish tone.


• Cable's low for the session @ 1.2624. Last week's muti-month low resides at 1.2596.

Antipodeans: AUD/USD +0.1%; 0.6506. NZD/USD -0.2%; 0.5862

• Mildly diverging fortunes for both currencies with AUD faring marginally better than its Antipodean counterpart. AUD/USD has managed to hold above the 0.65 mark after yesterday's session of losses which saw the pair trade within a 0.6484-0.6544 range. NZD/USD has extended on yesterday's selling and slid further on a 0.58 handle. NZD/USD has been as low as 0.5860 with the next target coming via the YTD low @ 0.5836.

21 Nov 2024 - 10:20- ForexEconomic Commentary- Source: Newsquawk