After a modest bout of firming early in the session, the dollar mostly lost ground through the N.Y. session on Friday, with position squaring seen as the main driver. Stocks took another nose-dive, which didn't help the greenback either. EUR-USD based at 1.0808 before rallying to 1.0863 highs by mid-morning. USD-JPY topped out at 121.75, later falling back under 121.20. Cable bottomed at 1.4887 before managing to briefly reclaim the 1.48 handle. USD-CAD printed trend highs of 1.4001 on cool Canada CPI and wholesale data, then fell to 1.3855 lows as oil and commodity prices rebounded.

[EUR, USD]
EUR-USD rallied to 1.0863 highs, up from 1.0808 N.Y. session lows. The pairing appears to be following Friday's general theme of position squaring, after coming from Tuesday's highs of 1.1059. Liquidity will likely be an issue next week, as thinned desks and lighter orders could make for some choppy price action. As a result, traders have apparently decided to clean up the books into the weekend. Support remains at 1.0800 with resistance up at 1.0914, which marks Thursday's peak, and the 50-day moving average.

[USD, JPY]
USD-JPY made 121.75 highs in N.Y. trade, before ebbing back under 121.40. Another risk-off session has supported the yen, as has the aftermath of the BoJ's rather meager stimulus measures overnight. While no policy move was expected, there is growing sentiment that the half measures made overnight have completely eliminated the chances for additional QE in the first quarter of 2016. As a result, USD-JPY may remain under pressure.

[GBP, USD]
Sterling was steadier on Friday but lost ground to both the dollar and euro this week. With the BoE's version of rate lift-off still some six months down the track, in our opinion, and data dependent, we anticipate Cable to continue grind lower. Initial focus is on the Dec-17 low at 1.4865. Resistance is now marked at 1.5000 and 1.5029-30.

[USD, CHF]
EUR-CHF continues to trade heavily, making a daily closing low below 1.0800 for the first time since Nov-17. The cross logged a one-month low of 1.0780 in the wake of the Fed's announcement, and has remained heavy since. We still expect EIR-CHF to remain comfortably above the sub-1.0500 levels that prevailed earlier in the year before the SNB cut the deposit rate to -0.75%.

[USD, CAD]
USD-CAD spiked higher following the Canadian CPI data, which was cooler than expected. The pairing had peaked at 1.3982 into the open before settling into 1.3930 in front of the data, and then new 11-year highs of 1.4001, just under the 1.4002 top seen in May of 2004. The pairing later faded to 1.3854 lows. The market had been targeting the 1.4000 level for a while, and with that out of the way, profit taking, aided by a modest rebound in oil and general commodity prices, set in in earnest. WTI crude however, will need to rally a long way to take the underlying pressure off the CAD.