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NOK on Top as Crude Rally Extends

FOREX

The near 30% rally in crude oil prices across November continues to lend support to commodity-tied currencies, with NOK outperforming again Wednesday. This keeps USD/NOK on track to test the early September lows of 8.6570, which would be the lowest rate since mid-2019.

The greenback came under some fix-related selling pressure despite starting the US session well. This kept a lid on the greenback, which underperformed all others in G10.

Brexit negotiations clearly remain fractious, with no signs of a deal emerging as yet. Markets continue to price for a favourable outcome in the talks that continue this week, raising interest in a suggestion from the Irish PM, who suggested a deal could be agreed on a "staged" basis in an attempt to find common ground. GBP/USD, while stronger, failed to reach new weekly highs.

Tier one data releases are few and far between Thursday, with US markets close for the Thanksgiving holidays. ECB's Schnabel & Lane and BoC's Macklem & Wilkins are due to speak.

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