General:
Given the despair Aussie dollar bulls fell into after the modest deceleration of the 3Q CPI data early Wednesday morning it seems pretty obvious that where the larger risk is in future moves. That said, there is plenty of sup¬port for a steady bullish and hawkish trend for the currency going forward. New to this column Thursday was the IMF’s suggestion to the RBA that hikes would be necessary is growth held steady.
Pound:
Sterling rose one percent against a broadly weaker dollar and outperformed the euro on Thursday as investors looked to push the currency higher in a choppy market, offsetting disappointing UK housing data. Nationwide data showing UK house prices in October fell for the third month in four earlier knocked the pound to session lows, but traders said persistent buying from Middle East accounts helped it rebound higher. The pound climbed to a 10-day high of $1.5954, with gains accelerating after stop loss orders were triggered through $1.5900 and $1.5910 as the dollar weakened versus a basket of currencies .DXY. By 1504 GMT, it was up 1 percent at $1.5935. "These are intra-day fast money flows. There's a lot of stop hunting going on, people are looking for targets and trying to push sterling in the direction they want," said Peter Luxton, a market analyst with Informa Global Markets.
DATA : No major data to be released today
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