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EUR/GBP Flirting With Key Support

  • Currency markets and asset markets in general are sanguine and rangebound early Friday, with the USD Index in minor negative territory to start the day.
  • AUD, NZD are very modestly firmer, but any gains are anchored by a soft session for Chinese equities, as profit-taking pushed indices lower after property support speculation news earlier in the week.
  • EUR/GBP sits toward the bottom-end of the week's range, with the cross narrowing in on key support levels at both 0.8687 as well as 0.8681, marking the 50- and 200-dmas respectively. The former has held as support on several occasions in the past few months, meaning bears could become more confident on a break of the mark to expose 0.8650 and below over the medium-term.
  • It's likely to be a second quiet session for US assets, with an early US close as the Thanksgiving break extends into the weekend. There are sporadic data releases, with Canadian retail sales and prelim S&P PMI data for November on the docket. The central bank speaker slate consists of ECB's de Guindos and de Cos both appearing at S'Agaro conference in Spain.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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