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This Week's Talking Points
The Euro continues to trade in a tight 1.1150-1.1250 range against the Dollar, despite the intraday volatility experienced across markets due to the surprise news of a U.S. delay to the imposition of tariffs upon a select basket of imports from China. The immediately weaker tone in Euro price action, in response to a positive stimuli, serves to emphasise its safe have nature. The pair shrugged off yesterday’s much weaker than expected German ZEW sentiment data, with price action continuing to be driven by global risk appetite rather than Eurozone fundamentals.
Sterling again displaying its entirely dictated by politics, with the currency barely moving after strong wage data yesterday (with average earnings rising 3.9% y/y, the highest since 2008). Brexit uncertainty continues to hamstring Sterling (as seen by the risk rally yesterday, Sterling underperformed other risky currencies in G10). For the day ahead we get the release of inflation data, albeit unlikely to be a material driver, with EUR/GBP hovering around a 92/93p range.

President Trump again moving markets with the US delaying imposition of 10% on most of the $300bn. of Chinese imports until mid-December. US equities popped, rates dropped and as a result we saw a clean out in the likes of JPY, CHF and EUR safe-haven long positioning. China has yet to respond/make concessions, and markets open with a nervous feel again this morning following poor Chinese consumer/industrial data.For today it's very light in terms of US data releases, with the broader trade dynamics the main driver for now.
Market Overview
Short-term Outlook
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