FX Majors Outlook

From the FXWW Chatroom – EUR-USD With the ECB meeting looming next week and the EZ curve 
under pressure, the EUR-USD may be expected to remain top heavy with the 
November EZ confidence indicators not expected to make much of a dent in 
dollar in the event of an upside surprise. As noted previously, expect the pair 
to continue to remain top heavy while contemplating the 1.0600 floor ahead 
of 1.0500 and 1.0450. 

USD-JPY Our near term view remains unchanged and the USD-JPY 
may continue to trawl a 122.00-124.00 range pending further USD cues with 
the BOJ arguably still perceived to be an relatively easy sell in terms of being 
still in bearish posture. Notably, core inflation for October also came in a tick 
below expectations at 0.7% yoy. 

AUD-USD The AUD underperformed across the board on Thursday in 
the wake of the disappointing capex numbers with the pair threatening to test 
the lower bound of its 0.7200-0.7300 range. However, the overnight 
stabilization in metals and still sanguine investor appetite should cushion on 
dips into 0.7190. 

GBP-USD UK 3Q GDP numbers are on tap today and the GBP-USD 
may well remain top heavy as BOE expectations continue to be diffused. Our 
preference remains to fade upticks in the pair with risks tilted towards 1.5030 
in the short term. [OCBC] 

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