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EUR/USD remains around 1% undervalued according to our short-term fair value model, ING’s FX analyst Francesco Pesole notes.Probability of a major revamp in EUR/USD volatility remains low”That shows that the rally in the US Dollar (USD) – net of last week’s correction – has still exceeded what can be justified by market drivers like rates and equity differentials. However, the euro is lacking bullish thrust and – as discussed above – a potential end to the US shutdown is not a clear-cut USD negative.””Today’s eurozone calendar includes the ZEW surveys in Germany. These have not sent the kind of optimistic…

The rupee traded in a tight range and appreciated by 6 paise to 88.67 against the US dollar in early trade on Tuesday, as weakness of the US dollar amid concerns over the long-term health of the US economy supported the domestic unit at lower levels. Forex traders said a muted trend in domestic equities and foreign fund outflows weighed on investor sentiment. At the interbank foreign exchange market, the rupee opened at 88.79 against the US dollar, then touched 88.67, registering a gain of 6 paise from its previous close. The rupee was later trading at 88.71 against the…

EUR/USD edges lower after four days of gains, trading around 1.1560 during the Asian hours on Tuesday. The pair holds losses as the US Dollar (USD) gains support amid growing hopes that the US government shutdown resolution is nearing. The US Senate passed a funding bill in a 60–40 vote, effectively ending the 41-day shutdown, with eight Democrats joining Republicans to advance the measure, which now moves to the House for approval.US President Donald Trump, on Monday, backed a bipartisan deal to end the US government shutdown, signaling a likely reopening within days. Senate Majority Leader John Thune said he…

GBP/USD kept its foot on the gas pedal on Monday, extending into a four-day win streak as Cable traders gear up for the latest round of UK employment figures. Veterans Day will see a moderation of market flows in the US on Tuesday, but hopes that the US could be close to wrapping up the longest government funding closure in its history should keep risk appetite well bid and put a hard cap on bullish US Dollar (USD) flows.UK data on deck, US data remains MIAUK Average Earnings, Claimant Count Change, 3-month Employment Change, and 3-month ILO Unemployment Claims are…

USD/CHF holds near 0.8060 on Monday at the time of writing, up 0.10% on the day, as the US Dollar (USD) stabilizes after the United States (US) Senate approved a measure to extend federal funding through January. This political progress helps ease fears of another potential government shutdown.The US Dollar Index (DXY), which tracks the Greenback’s performance against a basket of six major currencies, consolidates around 99.60. The agreement between eight Democratic senators and their Republican counterparts would prevent the closure of several federal agencies and unlock the release of key economic data, such as the Nonfarm Payrolls (NFP) report…

Momentum indicators are mostly flat; US Dollar (USD) is likely to trade in a range between 7.1200 and 7.1300. In the longer run, USD has likely entered a range-trading phase between 7.1120 and 7.1330, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note. USD has likely entered a range-trading phase24-HOUR VIEW: “We noted ‘a slight increase in downward momentum’ last Friday, and we were of the view that it ‘is likely to lead to a lower range of 7.1170/7.1280 rather than a sustained decline’. However, USD traded within a tight range between 7.1226 and 7.1268, closing largely unchanged…

The rupee depreciated 6 paise to settle at 88.71 (provisional) against the US dollar in a muted session on Monday, weighed down by elevated crude oil prices.However, positive domestic equity markets and a soft US dollar cushioned the rupee’s downside, forex traders said.At the interbank foreign exchange market, the rupee opened at 88.64 against the American currency, and touched an intraday high of 88.64 and a low of 88.71 against the greenback during the day.The domestic unit finally settled for the day at 88.71 (provisional), lower by 6 paise from its previous close.On Friday, the rupee slipped 2 paise to…

The Indian rupee clung to a narrow range in touching distance of its all-time low on Monday, as a broadly softer dollar amid improved risk appetite globally offered little comfort to the currency in face of persistent interbank dollar demand.The rupee closed at 88.6975 against the U.S. dollar, down marginally from its previous close of 88.66. The rupee had hit its all-time low of 88.80 in late-September.While the rupee found itself boxed in between dollar offers from state-run banks and persistent hedging demand, similar to recent trading sessions, its Asian peers were mostly up between 0.1% and 0.5%.The dollar index…

USD/CAD continues to lose ground for the consecutive session, trading around 1.4010 during the European hours on Monday. The pair depreciates as the Canadian Dollar (CAD) strengthens on upbeat domestic labor market data, bolstering expectations that the Bank of Canada (BoC) may pause its easing cycle.Statistics Canada reported on Friday that the Unemployment Rate declined to 6.9% in October from the four-year high of 7.1% in September, against the market expectations of remaining at 7.1%. Meanwhile, Net Change in Employment rose by 66.6K jobs to 21,015,300, extending the jump from the previous month and contrasting sharply with bets that it…

The rupee fell 4 paise to 88.69 against the US dollar in early trade on Monday, weighed down by the strength of the American currency in the overseas market and elevated crude oil prices. Forex traders said the rupee sentiment remained fragile amid global uncertainty. The US shutdown is providing a counter-intuitive lift to the dollar, with government spending halted, fewer dollars are circulating — tightening supply and offering short-term support to the currency, they said.At the interbank foreign exchange market, the rupee opened at 88.64, and slipped to 88.69 against the greenback, registering a fall of 4 paise from…