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Better GDP Fails to Translate to a Stronger EUR

FOREX

GDP data has fared better across Europe, with German, Italian, French and Spanish numbers proving better-than-expected. This failed to translate into a stronger single currency, however, with ECB's Lagarde just yesterday warning of the upside risk to Q3 growth numbers that's expected to fade materially into the end of 2020.

The greenback is paring some of the recent strength, but recent ranges have largely been respected. JPY is marginally stronger, while CHF is marginally weaker.

Month-end hedge rebalancing flows are broadly seen to be USD positive for October, although much of this order flow may have been completed earlier in the week alongside the broad greenback rally.

Earnings after-market Thursday were mixed, with Alphabet trading higher after-earnings, while Apple, Amazon and Facebook retreat.

Canadian GDP, US personal income/spending and MNI Chicago PMI are the calendar highlights Friday.

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