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China's RRR Cut Leaves Little Dent in CNH

FOREX
  • JPY is the poorest performer in G10 in early Friday trade, helping snap the losses posted in USD/JPY since the mid-week high at 142.24. For now, the pair oscillates just below the Thursday best of 139.64 and a break above opens the 100-dma at 141.18.
  • EUR is trading more favourably after several sessions of losses against GBP. This has prompted a small bounce in EUR/GBP off the Thursday 0.8572 low, but recoveries remain shallow for now. The single currency saw some support off headlines from ECB's Muller, who raised the biggest risk to the ECB being a premature end to the tightening cycle.
  • Elsewhere, the Chinese central bank cut the RRR policy rate by 25bps, largely as expected. The rate cut prompted a minor move higher for USD/CNH, but price action was largely contained as the move was inline with expectations.
  • Markets see an early close for the US, with Thanksgiving celebrations extending into the end of the week. As a result, there are no notable data releases, keeping focus on a speech by ECB's Visco at 1415GMT / 0915ET.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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