FX Update: The Dollar majors continue to lack direction
FX Update: The Dollar majors continue to lack direction, although stock markets picked up following positive corporate earnings reports out of the U.S. EUR-USD has ebbed back to the mid 1.1500s after yesterday failing to sustain gains above 1.1600. USD-JPY posted a three-session high at 112.42 before settling around 112.20-25. AUD-JPY posted a one-week high before ebbing back, while the likes of EUR-JPY and GBP-JPY have remained below their respective highs from yesterday, although also running higher during the Tokyo AM session. The weakness in the Yen has been concomitant with an improvement in risk appetite, although Chinese markets remained out in the cold and posted losses. Sterling has settled lower after printing respective three-session highs versus the Dollar and Euro yesterday. Cable is near 1.3170-80, down from yesterday's peak at 1.3227. The EU summit in Brussels will be put the focus firmly on Brexit, although the president of the European Council, Tusk, said yesterday that there is "no grounds for optimism" with regard to reaching a breakthrough in negotiations at this juncture. AUD-USD has been plying a narrow range below 0.7150, continuing a consolidation above the 32-month low seen in early October at 0.7041.