FX Update: Narrow ranges have been prevailing

FX Update: Narrow ranges have been prevailing in risk-cautious trading. The DXY dollar index settled around the 92.00 level, above yesterday's 12-week low at 91.84. EUR-USD remained buoyant but off from the 12-day peak seen yesterday at 1.1942. Cable also held within its Thursday range. USD-JPY ebbed to a four-day low at 103.91. The yen was concurrently steady versus the euro and the pound, but posted respective two- and four-day lows against the Australian and Canadian dollars. AUD-USD ticked modestly higher, which was still sufficient to take the pair into 12-week high terrain above 0.7380. NZD-USD posted a new 29-month peak. USD-CAD remained above recent 17-day lows. Bitcoin steadied, which performed strongly this year on the back of dollar liquidity, but remained over 12% down on its recent highs. U.S. markets will reopen after yesterday's Thanksgiving holiday, but market conditions will remain on the thin side. President Trump said that he will leave the White House if the Electoral College votes for Biden, which may be as close to formerly conceding the election as he will go. A sharp focus remains on EU and UK talks, with a face-to-face round taking place in London over the weekend. There now reports that the EU parliament might convene as late as December 28 to ratify a deal, if necessary. The spectre of a no-deal hangs over proceedings, though the consensus, as judged by the ongoing stability of the pound, remains that a deal will be reached. In Chain today, data showed industrial profits surge 28.2% y/y in October, up from 10.1% y/y growth in September and turning the year-to-date figure positive for the first time in 2020. This comes with the PBoC shifting to a more neutral policy stance and with Chinese authorities reportedly vowing "zero tolerance" for misconduct among bond issuers, according to a Reuters article. More defaults may cause indigestion on Chinese stock markets, but Beijing is obviously confident that is has economic and financial robustness to weather the defaults, and many analysts welcome this as a process that will rid the economy of unviable zombie businesses while freeing up resources.