Consolidates Thursday's Sell Off

Risk aversion provided a lift for the USD through Thursday trade, the market reacting to COVID spread/second wave in Europe, US fiscal negotiation deadlock and the EU Summit/Brexit. NY took over the downside pressure on EUR/USD, seen during the European morning, pressing the rate down from an intraday high of $1.1758 to a low of $1.1689. Rate picked up some mild demand through the 1600BST fix before, edged to $1.1710 before closing the day at $1.1706. Thursday's move lower held shy of key support at $1.1685/80, a break below expected to prompt stronger sales. Asia consolidated Thursday's move between $1.1701/16, trading around its NY close into Europe. EU Trade and final CPI due at 1000BST, not normally major market movers. More focus on US Retail Sales(1330BST) and prelim UofM at 1500BST. US IP/Mfg/Cap.Ut. also due at 1415BST. EU Summit continues Friday, agenda to focus on EU-Africa relations, possibly other foreign policy issues. UK PM Johnson to provide a response to EU talks, possible extension of talks into next week(after Oct15 deadline passed). US Fed Bullard and Williams speak at 1435/1445 respectively. Support $1.1685/80, $1.1665/60. Resistance $1.1715/25, $1.1750.

MNI Techs: EURUSD traded lower yesterday in line with general USD strength. The move lower follows the recent rejection off the 1.1831 high on Oct 9. Attention turns to the next important support handle at 1.1685, Sep 30 low. A break of would set the scene for a deeper decline and expose the key 1.1612 level, Sep 25 low. 1.1612 also represents the trigger for a resumption of the downtrend that started on Sep 1. Resistance is at 1.1771 Wednesday's high.