Low liquidity session sees havens win out.....>

FOREX: Low liquidity session sees havens win out

-In a thin volume, low liquidity session, headline risk remained the key, with

the USD index and JPY gaining at the expense of the EUR and NZD. A further

tightening in the US sanctions pressure on Iran helped moderate risk sentiment

across the board, keeping the USD index buoyant and the confirmation that German

have declined to open the purse strings and boost fiscal spending dented the

single currency. The news pressed EUR/USD briefly below the $1.10 mark, keeping

the outlook bearish.

-NZD was the underperformer throughout the Friday session. Participants continue

to eye the RBNZ rate decision due next week. Despite analysts largely looking

for unchanged, the market-implied odds of a rate cut have grown across the past

fortnight and now eye a near 30% chance of a cut - up from closer to 9% from

mid-September.

-Prelim global PMI data crosses next week as well as German IFO, US GDP and

personal income/spending data. Speeches are also due from ECB's Draghi and Lane,

BoE governor Carney and a variety of Fed speakers.