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Recovery Efforts Off Asia $1.1630 Low Remain Laboured Whilst Below $1.1650/60.

EURO-DOLLAR
MNI (London)
  • EUR/USD broke below $1.1650 into Friday's month-end fix, USD demand was signalled, touched $1.1640 in post fix trade, closed the week at $1.1647.
  • Opening Asia saw rate touch $1.1655 but general risk off feel acted to press rate to an initial low of $1.1638, with decent counter demand noted around Friday's low.
    A slight easing in risk aversion, as sentiment was given a lift after release of the China Caixin PMI, allowed for a move back to $1.1649 but failed to find the momentum to clear above $1.1650.
  • COVID induced lock downs in Europe have impacted the EU growth outlook, which along with last Thursday's ECB dovish signals for its December meet, continue to keep EUR outlook soggy.
  • Rate was pressed to an extended low of $1.1630 with recovery efforts into Europe now meeting resistance at the $1.1640 level.
  • Support seen at $1.1630, stronger at $1.1615/12(SEp28-25 lows) and into $1.1600. Resistance $1.1640/50, $1.1660, $1.1695/1.1705.
  • Final EZ Mfg PMI data due this morning. US PMI and ISM Mfg data due into the afternoon(1445-1500GMT respectively). ECB Rehn (dove) speaks at 1200GMT.
  • Focus on Tuesday's US election, polls suggests a tightening in key states.
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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