Most majors were uneventful as the USD index remained little changed sub-97.500 ahead of the FOMC meeting later this week, as such EUR/USD remained above 1.1300 while GBP/USD traded within a tight range near Friday’s levels.
The USD index is in a 97.199-463 range and almost says it all in terms of the lacklustre start in currency markets to the final full week of the year. However, the Dollar is treading cautiously into the FOMC amidst an approximate 75% probability for a 4th 25 basis points hike, with the focus firmly on updated policy guidance and fresh dot plots to see whether the consensus has shifted towards a pause in tightening or a shallower rate profile from 2019 out.
The single currency has reclaimed 1.1300+ status vs the Greenback, but may also be hampered by expiry interest between 1.1320-35 as 1.1 bln runs off today at the 15:00 GMT cut, or technical resistance at the 50 DMA 1.1367 if the headline pair manages to clear option-related offers/hedges convincingly.
Option expiries of note for today's 15:00 GMT:
EUR/USD: 1.1200-25 (1.3 BLN), 1.1275 (0.518 BLN), 1.1320-35 (1.1 BLN) and 1.1360-75 (1.0 BLN).
Gone short on the last day of the past week below 1.1300 and with a target at 1.1030 and with a stop shy above of 1.1400. However, a daily close above the 50 DMA will trigger me to close the position.
The USD index is in a 97.199-463 range and almost says it all in terms of the lacklustre start in currency markets to the final full week of the year. However, the Dollar is treading cautiously into the FOMC amidst an approximate 75% probability for a 4th 25 basis points hike, with the focus firmly on updated policy guidance and fresh dot plots to see whether the consensus has shifted towards a pause in tightening or a shallower rate profile from 2019 out.
The single currency has reclaimed 1.1300+ status vs the Greenback, but may also be hampered by expiry interest between 1.1320-35 as 1.1 bln runs off today at the 15:00 GMT cut, or technical resistance at the 50 DMA 1.1367 if the headline pair manages to clear option-related offers/hedges convincingly.
Option expiries of note for today's 15:00 GMT:
EUR/USD: 1.1200-25 (1.3 BLN), 1.1275 (0.518 BLN), 1.1320-35 (1.1 BLN) and 1.1360-75 (1.0 BLN).
Gone short on the last day of the past week below 1.1300 and with a target at 1.1030 and with a stop shy above of 1.1400. However, a daily close above the 50 DMA will trigger me to close the position.
3
Probably go up a bit more but just in case