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]