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Greenback Consolidates After Strong Weekly Gains

  • G10 FX held narrow ranges on Friday, following the resumption of trade for US bond markets, following Thursday's Veteran's Day holiday. The dollar index traded either side of unchanged throughout the session, ending marginally in the red but consolidating its +1% gains for the week.
  • AUD, NZD and GBP stemmed three days of losses to be the strongest performers in G10 on Friday, rising between 0.3-0.4% against the dollar.
  • Similar dollar weakness prevailed against the Japanese Yen, with USDJPY gradually slipping from the overnight highs of 114.30 back below the 114 mark. Following a bullish engulfing reversal, the pattern signals scope for a stronger climb and has exposed key resistance at 114.70, Oct 20 high.
  • The Swiss Franc continues to be supported on dips with underperformance in the Euro pinning EURCHF to the most recent lows below 1.0550. The move continues to garner market attention with focus on the key 1.0505 mark. The level provided crucial support following the onset of the pandemic in early 2020.
  • In emerging markets, USDTRY made a push towards the psychological 10.00 level ahead of next week's CBRT meeting. The high print is currently 9.9969, however the pair trades close to these highs approaching the close. The Russian ruble came under particular pressure (down 2.06%) following geopolitical headlines regarding troop movement on the Ukraine border.
  • Chinese retail sales and industrial production data kicks off next week's calendar before the US Empire State Manufacturing Index.
  • The RBA will publish their minutes on Tuesday. UK and Canadian Inflation data is scheduled for Wednesday.

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