FX Update: The Dollar majors have been directionally challenged
FX Update: The Dollar majors have been directionally challenged as market participants sit on their hands into the Trump-Xi meeting at the G20 gathering in Argentine. EUR-USD has remained buoyant, in the upper 1.1300s, holding just below yesterday's one-week high at 1.1401. Cable has remained settled in the upper 1.2700s after failing to sustain gains above 1.2800 over the last couple of days. USD-JPY has been trading in a narrow range, of 113.34-48, so far today, and Yen crosses have seen a similar lack of directional bias. Asia stock markets mostly gained, though South Korea's Kopsi 200 finished with a 0.8% loss and Australia's ASX 200 with a 1.6% decline. As for the Trump-Xi meeting, the official China Daily newspaper has said a trade agreement is possible, and while Trump has said they are "close" to doing something, he also said that he is happy with the current arrangements because of the tariff income. In data, China's official manufacturing PMI survey for November produced the weakest headline since July 2016, of 50.0. Japanese data were mixed, including unchanged unemployment, at 2.4% in October, while the November Tokyo CPI came in at 0.8% y/y, off the median forecast for a 1.1% y/y rate, and October industrial production rose 2.9% m/m, more than double the median forecast for 1.2% m/m growth.