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27 Nov 2024

Fundamentals vs flows

• Softer USD. A firmer EUR, stronger JPY, & month-end portfolio rebalancing flows exerted a bit of downward pressure on the USD.• AUD & NZD. AUD ticked up & NZD rose despite RBNZ delivering a 50bp cut & indicating more to come. AUD/NZD below model estimates.• Holiday markets. US markets closed for Thanksgiving tonight & only open for a few hours on Friday. Thinner liquidity may generate bursts of intra-day vol. Mixed fortunes across markets over the past 24hrs with the economic data and central bank comments butting up against month-end portfolio rebalancing ahead of the US Thanksgiving holidays. US...

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Markets Consolidate Ahead of Inflation Print

Currency markets are back in consolidation mode as investors consider the implications of Donald Trump’s latest cabinet picks and position ahead of this morning’s inflation update. The dollar is inching lower amid month-end flows, Treasury yields are down, equity futures are slipping, and oil prices are weakening after Israel and Hezbollah reached a cease-fire agreement late yesterday, reducing the likelihood of a widening conflict that could pull in other regional powers. Unease over the extent to which protectionist policies might be deployed by the US remains elevated after the president-elect tapped Robert Lighthizer’s former chief of staff to lead trade...

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