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EUR/USD Slippage Flags Illiquidity of Markets Pre-Holidays

FOREX
  • The greenback is hitting reverse in early Monday trade, slipping against all others in G10. Despite the USD's pullback, Friday's highs in EUR/USD remain intact and provide the first resistance at 1.0663 and the post-ECB highs of 1.0735.f
  • The beginning of the NY crossover prompted a a small pick up in price action for EUR/USD, which slipped off the session highs of 1.0658 to trim the day's gains to ~40 pips or so. The small pick-up in volumes in currency futures shows how illiquid markets are here: with $512mln cash equivalent changing hands on the slippage, but scant support seen ahead of overnight lows of 1.0582.
  • German IFO data came in ahead of expectations, with minor positive revisions to the previous making for a positive release. Expectations for December were 83.2 vs. Exp. 82.0, but the release had little far reaching impact on asset prices.
  • GBP trades well alongside SEK, with AUD also posting minor gains. AUD/USD found support at the 0.6667 100-dma last week, and a further bounce targets gains toward 0.6736 initially ahead of the $0.68 handle.
  • Focus during US hours turns to NAHB Housing Market figures, as well as the Canadian materials price indices for November. EU leaders also meet, with reports suggesting lawmakers will lower their gas price cap plans, in a further attempt to squeeze revenues for Russia headed into 2023.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities

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