Majors in well-contained but choppy ranges - TDS

Price action pinball persists, leaving the majors in well-contained but choppy ranges, points out Mark McCormick, North American Head of FX Strategy at TD Securities.

Key Quotes

“Hopes of a rate hike in Turkey have lent a hand to EMFX, especially as USDCNH continues to hold below 7.0.”

“The anticipation of Hurricane Florence has influenced markets with oil prices spiking in part on concerns of possible supply disruptions.”

“The spike in oil benefits NOK more than CAD reinforcing our downside bias in CADNOK. For CAD, NAFTA headlines have offered a jolt, though we suspect dips will be short, shallow and ultimately bought ahead of 1.30.”

“The other major story centers on Europe, where Brexit headlines have gotten a bit more constructive. We are cautious chasing the move in the spot but do think there is a sufficient premium in the 3m option space to play for a deal over the coming months.”