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EUR/USD Fails to Build on Fresh Cycle Highs

FOREX
  • EUR/USD started Asia-Pac trade positively, with the pair bid up to new multi-month highs at 1.0874. This momentum found offers at the high and hit reverse, fading through to European hours where th pair sits broadly flat on Friday's close.
  • The price action is mimicked across equity futures markets, as the e-mini S&P holds just above handle support at 4,000 despite very early strength. Price action and volumes are expected to fade as the day progresses, with US traders absent until Tuesday.
  • NZD is marginally the strongest performer while JPY is the weakest in G10. Price action and ranges are more muted, however, with markets exhibiting more consolidative price action ahead of another back-loaded busy week.
  • With US markets closed for MLK Day, focus remains on the UK, Europe and Canada, with CB speakers today including BoE's Bailey and ECB's de Cos. Canadian datapoints are also due, with the November manufacturing sales and BoC business outlook on the docket.

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