FX markets are holding ranges as the market awaits a fresh impetus, according to Mark McCormick, North American Head of FX Strategy at TD Securities.
Key Quotes
“The DXY is grinding lower while EURUSD looks supported into the 1.1650 level. There is not much data to nibble for the single currency but Turkey and Italy headlines probably keep the rally in check ahead of 1.18. Peak divergence argues for buying into the dips, however.”
“The other major stories in G10 are mostly idiosyncratic. GBP has gotten a lift from the Barnier headlines that says the EU is open to a partnership. In effect, policymakers seem to have extended an olive branch by signaling some flexibility for the first time in the Brexit talks. The price action reflects some cautious optimism alongside poor sentiment. We see value towards 1.32 but mostly a relief rally for now.”
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