HALISTER1: INSIDE G-10: USD/JPY Approaching 113; EUR/GBP Tests 2-Month Low

INSIDE G-10: USD/JPY Approaching 113; EUR/GBP Tests 2-Month Low

(Bloomberg) -- USD/JPY continues to find strong underlying demand in Thanksgiving conditions with a rate hike fully priced in for December FOMC. Euro investors are becoming defensive ahead of Italian referendum next month.
  • Brent crude futures steady at $48.97/bbl; 10-year Treasury futures down 5+ ticks to 125-06
  • USD/JPY +0.2% to 112.72 vs 112.38-112.89 range
  • Japanese banks seen bidding for dollars ahead of larger- than-usual Tokyo fixing after local holiday yesterday, trader says
  • Macro buying near 112.50 has helped spot form an intraday base
  • EUR/USD -0.1% to 1.0544 vs 1.0525-1.0556 range
  • Large EUR/USD momentum sell-stops seen below 1.0520, trader says
  • Notional EUR1.76b of 1.05 option strikes expiring today, plus other over-the-counter option flows: DTCC data
  • EUR/GBP challenging yesterday’s low at 0.8465, which was triggered by rising U.K. yields after Autumn Statement from Chancellor Hammond envisioned higher spending
  • Chart momentum studies are bearish, suggesting near-term extension toward September low at 0.8334; here
  • Hammond’s Brexit response sees U.K. borrowing surge
  • Click here to monitor statistically significant cross-asset market moves on developed markets
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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