By: Stuart Cowell
The Dollar has consolidated gains seen following Friday’s post-jobs report moderation in Fed easing expectations. EURUSD has posted a narrow range around 1.1215-30 so far, while Cable, AUDUSD and other pairings saw a similar price action. The Yen unwound gains seen during the Tokyo session as stock markets across Asia came under pressure. USDJPY lifted back to the mid 108.0s after setting a low at 108.28, remaining comfortably within its Friday range. The pair has declined in eight of the last 12 weeks, though the last two have been up weeks. Cable settled after diving to a six-month low on Friday at 1.2481 following the US jobs report. EURGBP remained buoyant, but markets have still lacked the muster for a test of the recent six-month high at 0.6992. USDCAD settled around 1.3080, looking poised to challenge the eight-month low seen last week at 1.3037.
Turkey’s Lira sank lower on news of the central bank chief’s sacking by President Erdogan, which is the latest step of the latter to undermine the independence of the bank and credibility of Turkey’s economic policy. This comes just as Turkey is taking delivery of a Russian missile defense system, which is likely to invite US sanctions. The Lira dove 2.1% to its low versus the Dollar, unwinding gains seen over the last week, but still below the key 20-day moving average and trend-line resistance.
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