FOREX SUMMARY

US Retail Sales miss, provides some reversal in Equities and in turn USD.

• After trading at a 2 year high, EURUSD dips back below 1.2200, now at 1.2187 at the time of typing.
• We saw similar consolidation in Cable with the pair trending below 1.3500.Position squaring and positioning ahead of the FOMC has been suggested by desk, although mainly driven by some buying in USD.
• AUD trades mostly mixed in G10, on lockdown concerns, but has also extended versus the NZD.
• AUDNZD once again tested that 200d MA at 1.0662, which saw further upside momentum to trade towards next resistance at 1.0686 (traded 1.0683 high).
• Further traction in the pair will open to the 100d MA situated today at 1.0748.
• In FX news, the US designated Switzerland and Vietnam as currency manipulators and kept China on watch.
• Switzerland responded by denying the claim, but they are willing to intervene more strongly in FX market.
• Looking ahead, ALL EYES on FOMC Decision/Statement/Summary of Econ Projections: Wed 16 December at 1400ET / 1900BST Press Conference/Q&A: Wed 16 December at 1430ET / 1930BST
• The FOMC is likely to adopt new guidance on asset purchases at the December FOMC, but will fall short of adjusting its purchase program in either scope or size, preferring to wait for further clarity over the outlook before taking such a step. While an increase in the weighted average maturity of the Fed's asset purchases is not the consensus outcome from this meeting, it is expected by some market participants – setting up the potential for a mildly hawkish disappointment