Forex Today: cautionary fears on top for Monday

Forex today opened to quiet markets, with a thin calendar in the offering for Monday and holiday markets waiting ahead in the upcoming US session. The Aussie and the Kiwi both kicked higher to start the week, but flagged back into near-term lows as over-eager trades stepped back from the fold, while the Japanese Yen took a break in early Monday action, retreating modestly to allow the broader market reclaim recently-lost ground.

EUR/USD: Focus on Italy-German yield spread ahead of Italy budget deadline

It’s a Thanksgiving long weekend for the US, and Canadian markets are also out for Monday in observance of Remembrance Day, leaving the brunt of market action to the upcoming European and London market sessions. In the EU, focus remains on Italian budget loggerheads, and as the German-Italian bond yield spread continues to widen, the Fiber is looking down the barrel of breaking down below the critical 1.1300 handle for the first time in over a year.

GBP/USD: Brexit anxiety boosts demand for GBP puts (bearish bets)

Across the Channel, Brexit woes continue to plague the Cable, and despite managing to close a bearish gap to kick off the week, the GBP/USD is primed for a continuation of last week’s declines, losing the 1.2900 key technical level heading into Monday’s action.

Key notes from the Asian session

Moody’s: risk of a “no-deal” Brexit has risen – Reuters

Japan’s Abe calls for public works spending plan to support economy – Reuters

Over the weekend: Brexit divergence continues to widen

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