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Another Dose of Bad News for GBP

FOREX

Equities are bouncing very modestly in Europe after yesterday's pullback, with core European indices higher by around 1% or so. This has failed to translate into currency markets, however, with AUD, NZD among the weakest in G10 so far. USD, JPY are slightly stronger.

Another dose of bad news for GBP, as the EU rejected the UK's latest approach on fish. There was a decent pick-up in GBP volumes on the back of the headline - around 5k contracts crossing in GBP futures in the minutes following release - around £320mln cash equivalent. This followed the UK reaching out with a revised offer on fish, with Johnson ready to let EU boats retain two thirds of their catch. Markets now await the UK's response.

Focus turns to the tertiary reading of US Q3 GDP, expected largely unrevised. This is followed by consumer confidence data for December and existing home sales for November.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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