Holiday hangover keeps prices horizontal......>

FOREX: Holiday hangover keeps prices horizontal

-Despite markets re-opening fully Friday, the data docket is thin and price

action has reflected that, keeping volumes muted and liquidity thin. Currencies

aren't expected to be fully re-engaged until Thursday 2nd, with sporadic market

closures on Dec31 keeping traders away from their desks. Nonetheless, GBP has

been somewhat lively and continues to claw back the post-election losses to chew

through resistance at 1.3050. The 200-wma sits at the 1.3080 mark which could

draw a little attention ahead of the Dec19 high at 1.3133. There's little

fundamental behind the move here with political developments few and far between

while the PM is on holiday in the Caribbean. Parliament returns in the new year

where focus on the Jan31 EU departure date has lessened as a Brexit in 2020 now

looks cemented.

-As a result, GBP is the firmest and the greenback sits slightly weaker but most

recent ranges are being respected. Some decent sized option interest set to roll

off at today's cut could keep spot muted in EUR/USD and USD/JPY today, with

little else to elicit interest.