Europe Summary and Highlights 11 Nov
Dollar consolidates its step-adjustment to CPI, Fed comments
Lower yielders facing the most residual pressure, some hold into support/resistance elsewhere
Further digestion of the post-data dollar step-adjustment following the US CPI and the mainly hawkish Fed comments (some mix in terms of approach to pace - faster or still gradual - but all rather concerned by the inflation trends and need for policy to react to it).
It’s the ‘low yielders’ that are tending to feel the pressure extend, with USD/CHF and USD/SEK both up either side of ½ %. NOK also still heavy on the corrective pressure now gaining traction through from the sharp oil pullback of the last week or so.
USD/JPY is finding some better capping around 159 resistance with offers sat around there and of course the general, if recently dormant, intervention considerations in the background. EUR/USD sitting in current support in the 1.1130/50 area.
Little news of note yet. Bundesbank’s Nagel suggests German growth likely to accelerate in Q4 with recovery stronger than forecast.