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UK Holiday Thins Price Action, But CNH Remains Weak

  • Currency markets are muted ahead of the Monday NY crossover, with the UK market holiday keeping volumes and activity light. The single currency is modestly outperforming to keep EUR top of the pack, however a set of sizeable strikes effectively top-and-tail the Friday spot range in EUR/USD, helping to define price action so far.
  • The greenback is mixed, but off the European morning lows, aided by GBP/USD fading toward Friday's 1.2548 ahead of the crossover. NOK is among the poorest performers, keeping USD/NOK pinned to fresh multi-month highs as markets reverse the July downleg. 10.8299 marks the next major upside level.
  • Chinese markets remain a point of focus, with further headlines crossing this morning to suggest the authorities have requested funds to avoid net equity sales to boost index prices for a second consecutive week. The headlines have failed to contain CNH weakness, pushing USD/CNH through the Friday high to narrow the gap with 7.3361, the Monday high.
  • Datapoints are few and far between Monday, keeping focus on the speaker schedule as ECB's Nagel, Holzmann and Fed's Barr are all set to speak. Risk events pick up later in the week, with nonfarm payrolls the market focus on Friday.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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