FX Update: The dollar has remained on a softening tack
FX Update: The dollar has remained on a softening tack, printing fresh lows against some currencies, including both the yen and the euro, the latter of which has been the chief beneficiary of the softer U.S. currency. EUR-USD edged out a fresh nine-day high of 1.1414, which surpasses yesterday's peak by 13 pips. EUR-JPY, EUR-GBP and EUR-CHF, among other euro crosses, concurrently posted gains. A drop in Italian yields have shored up euro sentiment. This comes with markets anticipating the Fed is widely expected to accompany a widely expected 25 bp rate hike with dovish spin in policy guidance. USD-JPY touched a fresh seven-week low at 112.19 in early Tokyo trading, subsequently settling to the 112.30-50 area. Stock markets have rallied in Europe after a lacklustre, mixed session across Asia-Pacific bourses, while S&P 500 futures are showing a gains of almost 1% in the overnight session following a flat performance on Wall Street yesterday. Cable continued to make time in the mid-to-upper 1.2600s, holding in a consolidation pattern after a phase of sharp losses left a 20-month low at 1.2476 last week. UK November inflation data met expectations, rising 2.3% y/y in the headline CPI figure. USD-CAD has settled in the mid 1.3400s, down from the 18-month high the pair yesterday, at 1.3497, which was seen concomitantly with fresh major-trend lows in oil prices.