XE Market Analysis: Europe – Nov 25, 2015

The dollar has continued to trade softly, with EUR-USD carving out a new high for the week at 1.0677 and USD-JPY posting a nine-day low at 122.26. The greenback is also showing about 0.25% declines versus the Aussie and Kiwi dollars, and has lost ground to most Asian currencies, too. The dollar is underperforming this week as markets look beyond a likely December rate hike to a likely gradual and cautious policy path thereafter — dubbed in markets as the ‘dovish December rate hike’ view — and because markets had built up an extreme net long dollar exposure.