FX Update: EUR-USD has traded softer for a second straight session
FX Update: EUR-USD has traded softer for a second straight session, making a low of 1.1119 today and putting last Friday's two-month nadir into reach. Fed tightening expectations having been keeping the dollar bid. Our post-employment data survey of Fed watchers found all respondents expecting a 25 bp rate hike at the December 13-14 policy meeting. USD-JPY's rally extended to a peak of 104.04 today amid a broadly firmer dollar, swinging last Thursday's six-week peak at 104.16 into scope. Japanese markets and yen market liquidity returned today following yesterday's public holiday. The yen has traded mixed against other currencies, gaining moderately versus the euro, buy rising versus an underperforming Australian dollar and pound. Sterling has come back under the cosh amid continued Brexit angst. The London Times headlined that a "hard Brexit" could cost GBP 66 billion a year. UK data showing a 0.4% y/y gain in the headline BRC retail sales gauge was overlooked.