According to Mark McCormick, North American Head of FX Strategy at TD Securities, the major theme at the moment is the price action in the majors and a mix of value fishing and global equity convergence has seen the USD push towards the lower end of its recent range.
Key Quotes
“These ranges are bending but they are not ready to break ahead the Fed next week so we expect the majors to consolidate again into the weekend.”
“Next week’s Fed meeting is the appetizer to the mid-term entree in Nov. Still, the break of the 1.1750 level is important for the EUR, suggesting we could see higher lows there moving forward.”
“A mix of higher global rates and equities is a bad mix for the JPY, though it is decoupling from cyclical drivers that point to 111.40. We fade breaks of 113.”
Share
