Cross-currency basis is tightening rather sharply after a steady decline last week
As Adam pointed out here yesterday, this was one of the reasons why the market thought that we would see a year-end surge in the dollar.
But today, we're seeing a sudden reversal in the euro dollar basis - and that could be a reason that's helping to keep the euro underpinned as well today.
The EUR is the best performing currency on the major bloc so far, and EUR/USD is up a good 40 pips as it closes in on the 1.1800 level.
