By Dan Bell
Markets traded in relatively tight ranges last night, subdued by the Thanksgiving holiday in the US.
NZDUSD remained within the range of Wednesday night’s price action, posting a session high and low of 0.7454 and 0.7392 respectively, as a rally on improving German business sentiment was undone by Portugal being downgraded by ratings agency Fitch.
In a further blow to risk assets, news emerged that Deutsche Bank may need to raise an additional EUR3bln to meet the requirements of the European Banking Authority. EURUSD unsurprisingly lost 100pts on the news. Rumours also persist that another German bank may need as much as EUR5bln.
There is no major data scheduled for release in the next 24 hours, but markets will be watching for any impromptu headlines out of Europe.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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