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EUR: Upside potential remains – ING

The Euro could extend gains if Ukraine peace talks deliver a breakthrough, though negotiations may continue into next week. EUR/USD’s return to 1.16 opens room toward 1.17–1.18, ING's FX analyst Francesco Pesole notes.

Euro eyes further upside on Ukraine peace hopes

"The Euro retains some upward potential if a peace deal in Ukraine is agreed. The latest indications are that while some progress is being made, negotiations may drag on into next week."

"For now, EUR/USD bulls like us should be content with the return to 1.16. We think 1.17 can be reached with the pair's short-term undervaluation being trimmed, and our 1.18 year-end target with seasonal factors and some soft US data in December."

"Today, the ECB publishes the minutes of its 30 October rate decision. We don’t expect it to be a meaningful release for markets, as the Governing Council’s neutral view has been widely confirmed in post-meeting speeches."


GBP: Temporary relief as gilt market sell-off avoided – MUFG

The Pound Sterling (GBP) staged a relief rebound yesterday after the UK government released details of their own budget. There was initial relief amongst market participants that the Autumn Statement did not trigger a sell-off in the gilt market.
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DXY slides as Fed cut odds hit 80% – OCBC

The Dollar Index (DXY) gaps as markets price an 80% chance of a December Fed cut, extending the shift in Fed rhetoric, OCBC's FX analysts Frances Cheung and Christopher Wong note.
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