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After a buoyant start GBP was the main........>

FOREX
FOREX: After a buoyant start GBP was the main underperformer in G10, currently
down 0.54%. Risk appetite at the European open lifted Gbp/Usd to $1.4243,
falling just short of yesterday's high. A sharp turnaround in GBP followed,
cable touched extended pullback lows of $1.4146, Eur/Gbp rallied to Gbp0.8790.
-  Traders cited a number of factors behind the sharp GBP move this morning. RHS
EURGBP fix interest, month-end related flow and the announcement that Glaxo has
agreed to buy Novartis joint venture stake in a $13bn deal.
- Eur/Usd pared early gains to $1.2426, mainly driven by Eur/Jpy as risk was
taken off the table.
- Usd/Jpy encountered support overnight after Japan's former tax chief Sagawa
stated that Japanese PM Abe & his wife had no part in the Moritomo scandal. The
pair has range traded throughout Europe, last Y105.59.
- Aud/Usd tracked Eur/Usd and holds near the base of its $0.7718-58 range.
- Quiet on the calendar today with main highlights from Case-Shiller data at
1400GMT, Consumer Confidence at 1500GMT followed by Richmond/Dallas Fed survey's
at 1530GMT.

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