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Month-, year-end approaching and the USD......>

FOREX
MNI (London)
FOREX: Month-, year-end approaching and the USD retains its soft tone with
month-end models confirming earlier predictions that USD sales to be seen at
today's fixes. The expected thin liquidity into the close of the year had
traders positioning for the pressure on the USD. EUR/USD remained buoyed above
$1.1200 through Tuesday but held off a retest of Monday's high of $1.1221. Cable
retained a buoyant tone above $1.3100, the rate able to break above its Monday
high of $1.3150 on its third try (1000GMT fix?), taking rate on to $1.3170.
USD/JPY ground its way to an extended low of Y108.56 and retained a heavy tone
into NY. AUD extended gains above $0.7000, touched $0.7013 moving next major
resistance at $0.7082 into view. USD/CAD break below C$1.3042 has brought its
YTD low of C$1.3016(Jul19) into view. USD move allows the DXY to make a show
under its Dec12 low of 96.588, posts low at 96.564. Fixes remain key to activity
ahead of month-end, focus on 1600GMT.  
- Lower tier U.S. data headlines today's docket, Case-Shiller and US Consumer
Confidence, with liquidity a little more
limited over the coming days owing to various market closures.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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