FX Update: The USD index (DXY) rose to a two-day high
FX Update: The USD index (DXY) rose to a two-day high of 97.01, up from yesterday's one-week low at 93.63. EUR-USD, Cable and AUD-USD to concurrently posted respective intraday lows at 1.1357, 1.2743 and 0.7295. USD-JPY lifted to the mid 113.0s, though the magnitude of movement remained limited. USD-CAD, meanwhile, vaulted back above 1.3300 for the first time since Wednesday. There didn't appear to be any particular news catalyst behind the Dollar buying spree, with market narratives pointing to a dollar short covering dynamic ahead of the upcoming Trump-Xi meeting at the G20 gathering in Argentina this weekend. The meeting is being treated as a risk event with mixed signals having come from Trump with regard to the chances for the two sides coming to a better understanding. There had been a flurry of dollar shorting after Fed chair Powell's dovish-leading signal on Wednesday. EUR-JPY and EUR-CHF posted moderate as EUR-USD descended, while a fresh bout of Sterling weakness drove EUR-GBP up from lows. Data out of Europe and Asia had little impact. Eurozone unemployment holding unchanged at 8.1% in October while the preliminary November Eurozone HICP ebbed to 2.0% y/y from 2.2% y/y in the month prior. China's official manufacturing PMI survey for November produced the weakest headline since July 2016, of 50.0, while a batch of month-end Japanese data releases came in mixed relative to expectations.