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Euro Extends Bounce Off Lows As Dollar Momentum Halted

  • EURUSD rose the best part of half a percent on Thursday as broad dollar indices consolidated at lower levels. The single currency strengthened to around 1.1370, edging toward initial resistance at 1.1386, Tuesday's high.
  • NZDUSD matched the Euro's ascent and remains atop the G10 leaderboard. The currency took the lead from 2yr inflation expectation data released overnight, which surged to 2.96% from 2.27% previously - the highest rate since 2011. NZD/USD rallied to narrow the gap with the 50-dma of 0.7056. A break above here would see the short-term outlook improve toward 0.71 and the 200-dma.
  • Elsewhere EURNOK had a notable move higher of around 1.2%. EURNOK finds itself back above 10.00 for the first time since early October. The move came amid news from the central bank that they are halting their krone purchases carried out on behalf of the government for the rest of the month, effective from Nov. 19.
  • In emerging markets, there was continued focus on an extremely volatile Turkish Lira. Liquidity evaporated in USDTRY above 11.00, sparking a rapid acceleration to print fresh all-time highs at 11.3118. This extended the daily range to a massive 8.25%, before the pair consolidated somewhat back towards the 11 handle, currently up 3.3% for Thursday. The days advance strings together 8 consecutive positive sessions, strengthening roughly 17% at its Thursday peak.
  • UK October retail sales kicks off tomorrow's data calendar before ECB's LaGarde is due to deliver opening remarks at the Frankfurt European Banking Congress. Canadian retail sales is the highlight of the US session before Fed's Clarida speaks at 1715GMT/1215ET on global monetary policy coordination.

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