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Fading USD Amid Thin Volumes and Liquidity

  • The fading USD picks up further in recent trade (as noted in GBP/USD above), prompting EUR/USD to narrow the gap with the bull trigger of 1.0965. A move north of here would put the pair at best levels since mid-Aug, with 1.1065 the next level.
  • Earlier USD move triggered by retreat in yields, but currencies now moving independently of the US curve, as the 10y yield holds well within the overnight range.

It's clear that light volumes and low liquidity may be playing a part here, currency futures volumes are considerably lower-than-average for this time of day:

  • EUR futures 32% below average
  • GBP 22% below
  • JPY 54% below
  • AUD 33% below
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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