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Free AccessRecovery Efforts Off Asia $1.1630 Low Remain Laboured Whilst Below $1.1650/60.
- 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.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.